Netflix Year End Earnings Show Subscription Surge
Netflix has released its 4Q earnings and the information is nothing but good news for the company. Over the last three months of the year Netlix gained two million subscribers.
Not long ago Netflix was purging subscribers after revealing plans to separate their streaming and DVD service into two companies. Those plans were quickly scrapped but the damage was already done.
It now appears one of the internet’s most popular streaming services and DVD rental houses has bounced back strongly.
According to the Huffington Post, Netflix revenue increased eight percent to $945 million. Moreover, Netflix ended the year with 27.1 million subscribers.
According to the Associated Press, the surge in stock gives Netflix a 52-week high. Including the international market Netflix enters the new year with 33.3 million subscribers. A high majority of those subscribers are only signed up for the company’s streaming service.
Netflix ended the year with 8.2 million DVD by mail subscribers. The company plans to slowly phase out the service that helped turn them into a media giant.
There was some bad news hidden within all the good news. Netflix stock plummeted 78 percent, from 64 cents per share to 13. For the most part this had been predicted. As the company expands internationally costs rise, so even though revenue was up, total earnings are not.
Things are only looking for Netflix in 2013 however. Later this year the Kevin Spacey starring series House of Cards will premiere. It has been produced exclusively for the streaming service and joins other Netlflix original Lillyhammer as the company works to create original content to compliment it’s online library. Arrested Development’s fourth season will also debut on Netflix later this year.
Are you fan of Netflix? Are you happy the company is bouncing back?