The company posted revenues of $1 billion for the quarter and earnings per share of $0.13, compared to the street’s average estimate of $935 million and $0.13, respectively. The company now claims 27 million domestic streaming subscribers. The quarter also saw an additional 1.8 million international streaming customers for a total of 10 million, though the international operation is not yet profitable.
In contrast, domestic streaming turned a profit of $109 million for the quarter. DVD subscriptions continued to lose ground. About 380,000 DVD subscribers left in the quarter, bringing the total to 8.2 million. That’s a far cry from the 11 million DVD subscriptions Netflix claimed in the fourth quarter.
The company claimed it got a boost towards the end of the year. “Our holiday season was particularly strong, driven by consumers buying new electronic devices, including tablets and smart TVs,” CEO Reed Hastings and CFO David Wells wrote in a letter to shareholders.
Making a case for Netflix’s viability in the face of competition from Amazon, Hulu and Redbox, they noted that of Netflix’s top 100 TV shows and top 100 movies, Amazon had just 73. Hulu, meanwhile, had 27. Redbox had 12. The two were also optimistic about the current quarter, which will see the debut of House of Cards, an original series. Financially, the company predicts a “relatively flat” increase in its operating profit in the fiscal first quarter.
- Netflix announces 27 million US subscribers, posts unexpected profit (theverge.com)
- Netflix, Redbox and More: What You Need to Know (allthingsd.com)
- Netflix smashes street expectations with Q4 revenue of $945 million and EPS of $0.13 (thenextweb.com)
- Reviewing Redbox Instant, Amazon Video and More (live.wsj.com)
- Netflix ends year on a high note, calls House of Cards “defining moment for Internet TV” (paidcontent.org)
- Should Netflix, Inc. (NFLX) Bears Cover Their Shorts? (insidermonkey.com)
- Netflix Q4 earnings show 2 million new customers streaming in the US, 6 million total internationally (engadget.com)
- Redbox Instant CEO: Netflix was wrong to sideline DVDs [NewTeeVee Station] (gigaom.com)