This means the streaming company is paying virtually no tax outside of the USA, where it made a taxable profit of $606 million from revenues of $1.47 billion.
The company expected it would add about 8.15 million subscribers overall during the first half of this year as compared with 8.42 million in the same period in 2016.
Netflix missed its subscriber targets for the first three months of 2017 but is still set to reach the 100 million customers mark over the next week. In its global streaming segment, Netflix saw net additions of 3.53 million members.
The company now has over 98.75 million subscribers and it expects to pass the 100 million milestone by this weekend. Netflix ended March with almost 48 million subscribers outside the U.S.
If Netflix reaches 100 million subscribers this weekend, that means it's already added 1.25 million subscribers - or almost 40 percent - so far this quarter, well on its way to making its guidance of 3.2 million adds.
The world's biggest paid video service signed 4.95 million new customers last quarter, less than the 5.49 million analysts were expecting.
"As part of this, we are investing more in programmatic advertising with the aim of improving our ability to do individualised marketing at scale and to deliver the right ad to the right person at the right time", Netflix said. Netflix said it will spend more than $1 billion this year to "drive member acquisition". "Because of that, the major indicators of our progress were member and revenue growth and United States contribution margins", it said. Along with original shows like the Drew Barrymore-starring "Santa Clarita Diet" and "13 Reasons Why", the streaming company looks to continue its investment in areas like films and standup specials. Despite a five point drop in its stock price this morning, Netflix is now up a little over three per cent. Netflix began its European expansion in 2012, entering the UK (EWU), Denmark, and Finland. "At that point, Netflix might disrupt itself again, as it's done throughout its history with innovations such as DVDs by mail, subscription monetization, digital streaming and original content". Hastings also revealed although more than a billion hours of shows are watched weekly at Netflix, they have "YouTube Envy". Companies like Hulu are no longer just focusing on on-demand services, but are venturing out into live television.