Netflix saw a return to profitability and more than half a million new US subscribers in the second quarter of this year, and it’s now announced that it’s added a full two million more streaming members worldwide for the third quarter. That brings the company’s global base of streaming subscribers to 29 million, 25.1 million of which are in the US. It’s also announced another bump in profits to $8 million in net income, with global revenue of $905 million. It’s unsurprisingly a different story when it comes to DVD subscriptions in the US, however, with the company reporting a drop from 9.24 million total subscribers in Q2 to 8.61 million in Q3.
In terms of usage, Netflix says that its streaming members have now consumed over three billion hours of content, and that TV shows now account for about two thirds of that viewing activity. The company has also reiterated its commitment to original programming in its letter to shareholders, although it notes that commitment comes with some front-loaded expenses that will result in negative free cash flow for the next “several quarters” beginning with Q4. The company further adds that it believes “investment in originals is wise, and we will evaluate the performance of the slate next year to determine at what level we should fund additional original.” You can find the full letter and all the numbers at the source link below.
Filed under: Internet, HD
Netflix Q3 2012 earnings: 2 million more streaming subscribers worldwide, $8 million net income originally appeared on Engadget on Tue, 23 Oct 2012 16:10:00 EDT. Please see our terms for use of feeds.
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