Netflix Performs Better Than Expected In Fourth Quarter
Netflix has had it’s share of rough times in the last year. The company was going to separate both their online streaming service and physical DVD service. Dubbed Qwikster, users would pay a flat fee to watch all the TV shows and movies they wanted.
If you still wanted to get DVDs sent to your home, that would be a separate fee. Needless to say, the whole thing backfired and caused them to lose lots of customers and stock to plunge. Shortly after all the complaints and bad press, they announced everything would be kept the way it was.
Being that they had a bit of a rough patch, many were unsure if they’d be able to rebound so quickly. As it turns out, they did quite well in the fourth quarter and beat estimates. 220,000 new subscribers were added, earnings of $0.73 per share, and revenue of $876 Millon.
Wall Street’s estimate was earnings of $0.54 per share and revenue of $857 Million.
“The figures, which come in the first full quarter in which Netflix’s price increases took effect. The price hikes did take a toll on DVD subscriptions, which fell in the quarter to 11.2 million, a drop of 2.7 million. However, in a letter to shareholders, Netflix noted that “both hybrid cancellation and migration to streaming-only plans ebbed through the quarter.”
Currently, there are 24.4 Million total subscribers. 21.6 Million get their streaming service and 10.4 Million are subscribed to streaming and DVDs sent to their door.
Do you use Netflix and if so, did the recent debacle have you thinking about cancelling your subscription?
