Netflix blew past both its own and analyst expectations in the third calendar quarter, drawing in 5.3 million new subscribers globally and nearly $3 billion in revenue, thanks in part to partnerships it holds with telecoms operators around the world.

In its earnings report, Netflix noted fierce competition pushed it to work “more closely than ever” with providers including T-Mobile US, France-based SFR and Proximus in Belgium to distribute its content.

Netflix said it is “pleased” with the early results from these partnerships, and outlined plans to pursue additional bundling opportunities to supplement its direct-to-consumer strategy. The streaming giant exited the quarter with 104 million paid memberships and 109 million total memberships across the globe.

The US continued to dominate Netflix’s balance sheet, alone accounting for around half ($1.55 billion) of the company’s revenue and nearly half (52.77 million) of its worldwide subscriber count. But Netflix also continued to make significant strides on the global stage, growing international revenue to $1.33 billion. Its international subscriber count surpassed the US for the second quarter in a row, coming in at 56.5 million.

Mobile could drive continued growth
Netflix made it clear it sees room to run in markets outside the US.

“As we move into 2018, we aim to achieve steady improvement in international profitability and a growing operating margin as our success in many large markets helps fund investments throughout Asia and the rest of the world,” the company wrote in a letter to investors.

Paolo Pescatore, VP of CCS Insight’s multiplay and media research group, told Mobile World Live the potential for growth is “far greater” in international markets than in the US. However, he noted Netflix must work quickly to pull in new subscribers to balance rising costs.

The company continues to burn cash on heavy content investments, ending Q3 with a “negative cash flow” of $465 million. Netflix noted it plans to spend another $7 billion to $8 billion on content in 2018 (notable in light of its recent Disney content loss).

According to Pescatore, mobile plays a “key role” in the subscriber acquisition process. Netflix’s partnerships with operators are mutually beneficial, and can be parlayed into greater gains in emerging markets where broadband access is limited to mobile, he added.

“Looking at future growth, especially gaining subscribers in emerging markets, then mobile will play a significant role given that for many users, a phone is their sole device for accessing the internet, messaging and watching video,” he said.

CNBC columnist and technology investor Eric Jackson speculated the cord cutting trend could give Netflix room to nearly double its US subscribers to around 100 million. According to statistics released by the FCC earlier this month, 51 per cent of US households are wireless only.