The Crown propels Netflix to value of more than $100 billion

Netflix shares jumped 9 percent in after-hours trading on Monday, taking its market capitalisation soaring past $100 billion for the first time.

The return of popular shows such as The Crown and Stranger Things, as well as the Will Smith action movie Brighter, were credited with attracting two million more subscribers than Wall Street expected at the end of last year, tripling profits at the online video service. 

Shares reached more than $248 on Monday after rallying throughout the month and rising 53 percent last year. 

"We had a beautiful Q4, completing a great year as internet TV expands globally,” Netflix said in its quarterly shareholder bulletin, revealing it had brought in 6.36 million subscribers.

The company has signed up more than half of all US broadband households and is building its customer base in 190 countries by spending billions on programming.

Along with 1.98 million customer additions in the United States, the company ended the year with 117.58 million streaming subscribers around the globe, despite a price increase in October.

"Netflix is pouring more and more money into making content, and it is directly translating into more subscribers," BTIG analyst Richard Greenfield said. "They see a huge opportunity and they are moving as fast as they can to attack it."

The company also said it took a $39 million non-cash charge for "unreleased content we've decided not to move forward with." A source familiar with the matter said the charge was related to content starring Kevin Spacey, with whom Netflix cut ties after he was accused of sexual misconduct.

Netflix temporarily halted production of House of Cards to write out Spacey's character and decided not to release the film Gore, which starred Spacey as Gore Vidal.

Spacey has apologised to one of his accusers, and according to his representatives is seeking unspecified treatment. Reuters was unable to independently confirm the accusations.

The charge is one of the first signs of costs faced by companies in the wake of a widespread campaign against sexual harassment.

Netflix turned a DVD-by-mail business into an online competitor of movie channel HBO. As it grew it began licensing its own original shows to ensure a stream of new offerings if studio suppliers ended deals.

In fact, Walt Disney Co is making a major push into online streaming and will pull its first-run shows and movies from Netflix in 2019 as Hollywood fights for audiences.

Netflix plans to spend up to $8 billion this year on TV shows and movies to fend off Disney, Amazon.com Inc, studios-owned Hulu and local competitors that are jumping into online video, and it is turning more and more to high-budget projects, such as the roughly $90 million Bright.

In 2017, Netflix recorded its first full-year profit in international markets. The company has said it is aiming for steady improvements in profitability overseas this year.

"We believe our big investments in content are paying off," Netflix said in a quarterly letter to shareholders.

Netflix is raising its marketing budget faster than revenue is growing and will spend about $2 billion this year. The company expects negative cash flow in 2018 of $3 billion to $4 billion, up from $2 billion in 2017.

Last October, Netflix raised prices for two of its three main subscription plans to help fund the substantial content investment. The earnings report showed customers took it in stride.

"Consumers are tolerant as long as something's improving," Netflix CEO Reed Hastings, on a post-earnings webcast, said of the price increase.