Netflix's growth was driven by its international activities, with the net addition of 1.12 million new streaming customers for a total 13.80 million outside the US. The US base increased by 0.57 million to 36.24 million at the end of June. The rapid growth abroad reduce the loss from the international activities to USD 15.3 million in Q2 and helped convince Netflix to continue the expansion. The company confirmed it will launch in Germany, France, Austria, Switzerland, Belgium and Luxembourg in September, adding another 60 million broadband households as potential customers. In addition, it will start selling gift cards at select retailers later this year to help raise its profile and plans to develop an app for Google's new Android TV platform.
The cost of the launch in new countries will swell the international loss to an estimated USD 42 million in Q3. Netflix forecast a total net profit for the third quarter of around USD 55 million and revenues at USD 1.224 billion.
