Netflix Earnings Preview: Subscriber Growth Accompanied By Pressure On International Margins

The company reported strong subscriber numbers in the last quarter after an unexpected miss in Q3 2014. For the current quarter, we expect that the overall customer base will continue to grow. However, the rate of growth of domestic subscribers is likely to come down compared to the same period last year, as the market is slowly approaching the point of saturation. Additionally, continued expansion will put stress on international contribution margins.