11:48 pm

  Local News
  State / National / World
  Opinion / Letters
  Arts / Entertainment
  Submit Event
  Comics / Games
  DJ Designers
  Advertise With Us
  About Us
Netflix tops 50M subscribers as 2Q earnings soar
July 22, 2014, 05:00 AM By Michael Liedtke The Associated

SAN FRANCISCO — Netflix’s second-quarter earnings more than doubled as new episodes from a hit series helped the Internet video service surpass 50 million worldwide subscribers for the first time.

The gains announced Monday include an additional 570,000 U.S. subscribers, slightly more than Netflix’s management predicted. The quarter is typically the company’s slowest of the year, as people spend more time outdoors instead of watching video.

Investors applauded the second-quarter results, pushing Netflix’s stock up $4.05 to $456 in extended trading. The shares have surged by 23 percent this year, while the Standard & Poor’s 500 index has increased 7 percent.

The second quarter featured one of Netflix’s marquee attractions, “Orange Is The New Black,” which returned for its second season in early June. As with Netflix’s other original series, all 13 episodes of “Orange Is The New Black,” were released simultaneously so subscribers could watch the story unfold at their leisure.

“Consumers are enjoying more than ever being in control of their own schedules, able to click and watch whenever they want,” Netflix CEO Reed Hastings said in a Monday interview.

Without breaking down the specific viewership numbers, Hastings said “Orange Is The New Black” became Netflix’s most-watched series during the first month after the June 6 release of the second season.

“Orange Is the New Black,” set in a women’s prison, received 12 of the 31 Emmy Award nominations bestowed upon Netflix programming for this year’s awards. Netflix’s Emmy nominations eclipsed the 24 garnered by longtime pay-TV channel Showtime, which collected 24, but lagged far behind HBO’s pace-setting 99 nominations.

Netflix Inc. ended June with 36.2 million subscribers in the U.S. and another 13.8 million customers in roughly 40 other countries.

The Los Gatos, California, company picked up 1.1 million subscribers outside the U.S. in the second quarter, a figure that also topped management’s projections.

The company said it expects to add another 3.7 million subscribers worldwide in the current quarter ending in September, including 1.3 million U.S. customers. It also plans to start selling its Internet video service in six more European countries in September, including Germany and France.

Netflix’s long-term goal is to reach as many as 90 million U.S. subscribers and more than 100 million internationally.

The second-quarter performance will likely alleviate any concerns that a price increase imposed in early May would undercut Netflix’s growth. Netflix raised its rates by $1 to $9 per month for Internet video streaming in the U.S., but the company eased the blow by allowing existing subscribers to continue paying the old price for at least two years.

As Netflix’s video-streaming service steadily grows, the DVD-by-mail rental business that once was the company’s foundation is slowly crumbling. The DVD rental service shed another 391,000 subscribers in the second quarter to end June with fewer than 6.3 million customers. That’s a decline of 55 percent in less than three years.

Netflix earned $71 million, or $1.15 per share, during the April-June period. That compared to income of $29.5 million, or 49 cents per share, at the same time last year. This year’s earnings per share were a penny above the average estimate among analysts surveyed by FactSet.

Revenue climbed 25 percent from last year to $1.3 billion, matching analyst projections.



Tags: million, netflix, subscribers, second, quarter, netflix,

Other stories from today:

McDonald’s, KFC in China face new food scandal
Star Wars Car, a Doomsday doll: Toys of Comic-Con
Microsoft makes design central to its future

Print this Page Print this Page  |  Bookmark and Share
<< Back
Return To Archives

Daily Journal Quick Poll
Who will win the World Series this year?

The Cardinals
The Cubs
The Rangers
The Astros
The Mets
The Dodgers
The Blue Jays
The Royals


McCarthy withdraws candidacy for speaker
WASHINGTON — In a stunning move, Majority Leader Kevin McCarthy on Thursday withdrew his candidacy..
Clinton server hack attempts came from China, Korea, Germany
WASHINGTON — Hillary Rodham Clinton's private email server, containing an electronic inventory of ..
US airman who helped thwart French train attack is stabbed
SACRAMENTO — Airman 1st Class Spencer Stone, who was hailed as a hero for helping to tackle a gunm..
Syrian general says Russian strikes aid ground offensive
DAMASCUS, Syria — Syria's top general on Thursday said Russian strikes had helped government force..
More >>  

©2015 San Mateo Daily Journal
San Mateo County order to show cause