Last week Netflix (NASDAQ: NFLX) announced its fourth quarter 2016 results, marking its 10-year anniversary of online streaming video with 7.05 million net new members and $2.4 billion in global streaming revenue, a 41 percent increase year-over-year. Here are other highlights from the fourth quarter:

• Operating profit was $154 million, compared to guidance of $125 million.
• Net income was $67 million, compared to guidance of $56 million.
• Netflix added 7.05 million net new members globally compared to forecast of 5.20 million, and 5.59 million year-over-year.
• Netflix added 1.93 million members in the U.S., compared to a forecast of 1.45 million, and 1.56 million year-over-year.
• Netflix added 5.12 million members internationally in Q4, compared to a forecast of 3.75 million, and 4.0 million year-over-year.
• Total memberships at the end of the fourth quarter of 2016 were 93.8 million with a forecast of 99.0 million total members for the first quarter of 2017.
• Netflix announced earnings her share of $0.15, a $0.02 increase over Wall Street predictions, says Forbes.

Operational highlights include:

• In Q4, Netflix launched offline viewing so members could download content to iOS and Android devices.
• In Q4, Netflix launched on Comcast X1 set-top boxes to integrate Netflix with Comcast using the X1 remote control and user interface.
• After the company’s 2016 global expansion efforts, Netflix is now available in 190 countries with 47 percent of all members now outside the U.S.
• The Crown won the Golden Globe for Best TV Series (Drama) and Clair Foy won Best Performance by an Actress in a TV Series (Drama) for her portrayal of Queen Elizabeth II in The Crown.
• Eight individual Netflix original series have received a total of 17 nominations, the most of any network, for the Screen Actors Guild Awards which will be announced later this month.

In its January 18, 2017 letter to shareholders, Netflix said that it is learning how to match content with varying audience tastes around the world.

“It is clear to us that high quality content travels well across borders,” Netflix said. “We continue to invest in local programming to complement our content offering and as a means to introduce new members to our global library.”

Original series including Marvel’s Luke Cage, The Crown, season 3 of Black Mirror, Gilmore Girls: A Year in the Life, Trollhunters and the company’s first Brazilian original series 3% are all performing well. Netflix’s Japanese anime content and Turkish dramas are also doing well.

“It’s amazing to think that we launched original programming on Netflix in 2013, and in just four years, our original series accounted for five of the top 10 most searched TV shows of 2016 globally, including Stranger Things at #1, according to Google trends,” said Netflix.

In the first quarter of 2017, Netflix projects 5.2 million net new additions with 1.5 million in the U.S. and 3.7 million internationally. The forecast decline domestically reflects Netflix exceeding Q1 2016 results by 27 percent. Netflix is forecasting an annual operating margin of 7 percent for 2017, based on current foreign exchange rates, compared to actual results of 4 percent the last two years.

The company is forecasting an operating margin of 9 percent in the first quarter, based on the “timing of content spend” which includes moving the House of Cards season 5 premier to the second quarter. In 2017, Netflix plans to invest over $6 billion on content, a $1 billion increase over 2016 spending.

From a competitive perspective, Netflix mentioned that internet video is a “global phenomenon” as competitors like Amazon Prime Video and YouTube expand their footprint.

“In short, it’s becoming an internet TV world, which presents both challenges and opportunities for Netflix as we strive to earn screen time,” said Netflix.

Netflix also commented on net neutrality which could change under a Trump administration. Netflix does not anticipate that weakening net neutrality laws will anticipate service, it did offer a statement about its position.

“On a public policy basis, however, strong net neutrality is important to support innovation and smaller firms. No one wants ISPs to decide what new and potentially disruptive services can operate over their networks, or to favor one service over another. We hope the new U.S. administration and Congress will recognize that keeping the network neutral drives job growth and innovation,” Netflix said.

Investors reacted favorably to the earnings report with stock ending slightly up at $138.60 on January 20, 2017. This is a significant increase over Netflix stock’s price of $99.12 per share on January 25, 2016.

Insider Take:

Now 10 years into the streaming business, Netflix is stronger than ever, continuing its reign as the top streaming video on demand subscription service. As Netflix points out though, the field of internet TV is expanding and it has competitors like Amazon Prime Video and YouTube hot on its heels with original programming of their own. Netflix is also aware of the impact other competitors and partnerships and political positions could have on its success. As a result, Netflix has forecast conservatively for the first quarter of 2017 and will adjust its strategies and predictions accordingly as these unknown factors flesh themselves out a bit.