Netflix reported a 22.7 per cent jump in quarterly revenue as the video streaming service provider added more net subscribers worldwide than its expectations.

Netflix, which produces shows such as House of Cards and Orange is the New Black, said revenue rose to $1.64 billion (€1.50bn) in the second quarter ended June 30th, from $1.34 billion a year earlier.

The company’s net income fell to $26.3 million, or 6 cents per share, from $71 million, or 16 cents per share.

Netflix added 3.28 million net subscribers worldwide, beating its own forecast of 2.50 million.

The company reported its global subscriber base had grown to more than 65 million, beating its own forecast and sending shares up more than 9 per cent.

Chief executive Reed Hastings said it was possible the movie and TV streaming service’s planned entry into China might be delayed beyond the company’s goal of 2016.

Netflix is aggressively moving into new markets and aims to reach 200 countries by the end of 2016.

On a conference call Mr Hastings was asked if the company might miss its target for completing a global rollout in all of its new markets by the end of next year.

“So China, again, we still have some things to figure out, so I suppose it’s possible,” he said, but added he was “pretty confident” about the rest of the world.

The biggest hurdle, Mr Hastings said in an interview, is securing the required government clearance and partnerships needed to operate in China, a country with strict regulation of media.

“We’re trying to or exploring a number of different options for offering Netflix in China,” Mr Hastings said. “Until you get the wide range of government permissions that you need, you don’t know until you’ve gotten them.”

This quarter, Netflix is introducing its service in Japan, which Mr Hastings said was “very brand sensitive” and would be among the slowest markets to penetrate.

Netflix will move into Spain, Italy and Portugal in the fourth quarter. No other new markets are planned for this year, Mr Hastings said.

Reuters