Tuesday, 26 July 2011

Netflix has 25m subscribers

"Netflix hit 25 million subscribers and broke records for both its revenues and its earnings in the second quarter, but cut its earnings outlook for the next few months since it expects some fallout from its recent price hike.
The company added 1.8 million subscribers in the quarter and posted a net income of $68 million on revenues of $789 million — both records. But the quarter, which ended June 30 and was unaffected by the price increase, was a transitional one for the company. As the company noted in a letter to shareholders: “The streaming-only plan continued to gain in popularity, with nearly 75% of our new subscribers signing up for it. As a result, our average subscription price reverted to a slight quarter-over-quarter decline.”
The company also noted that “With the rapid adoption of streaming, DVD shipments for Netflix have likely peaked.”"
Source:  Mashable, 25th July 2011

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