Netflix shares soar as viewer numbers climb (Update)

Oct 21, 2013
The Netflix company logo is seen at Netflix headquarters in Los Gatos, CA on Wednesday, April 13, 2011

Netflix shares soared 10 percent Monday as the streaming television service reported that profit in the recently-ended quarter climbed along with its subscriber numbers, which are now above 40 million.

The up-to-date ranks of Netflix viewers, for the quarter up to September 30, represents a big jump on the fewer than 30 million who subscribed to the on-demand television service a year earlier.

Profit rose to $31.8 million on revenue of $1.1 billion in earnings which also bested the same quarter a year earlier and topped Wall Street expectations.

Netflix executives credited the California-based company's investment in original programs such as "House of Cards" and "Orange is the New Black" with boosting its profits and prospects.

"Over the next few years we aspire to support creation of some of the most compelling and remarkable content ever produced," Netflix chief executive Reed Hastings and top financial officer David Wells said in a letter to investors.

The company now plans to double its investment in original content, which accounted for less than 10 percent of the content in the Netflix library.

Netflix shares, which rose steadily through the day in anticipation of favorable quarterly earnings figures stood at $392.20 in after-market trades, a gain of more than 10 percent since the results were released.

"Coupled with the flexibility of our Internet viewing and power of our personal recommendations we will keep changing television for the better," the letter to investors added.

Hastings, in an earnings webcast streamed at Google-owned YouTube, said: "In every market there are lots of people who love Hollywood content and we are trying to augment that with original content."

Netflix is considering series-style television shows, expanding into making its own movies, executives said.

"We are actively looking right now at a few documentary projects," said chief content officer Ted Sarandos.

"We'd like to do more of that in the movie space."

Hastings said there are no plans to increase the monthly fee for the service, which is $7.99 in the United States. Netflix offers service in 41 countries and reported seeing subscriber growth in all regions.

Netflix subscribers watched a total of about five billion hours of films and television shows at the service last quarter, according to Hastings.

He said there were no changes planned at a separate stand-alone Netflix service that lets people receive and return rented DVDs by parcel post.

Explore further: Netflix gains 630K subscribers as 2Q earnings soar

add to favorites email to friend print save as pdf

Related Stories

Netflix shares soar as ranks of viewers surge

Apr 23, 2013

Netflix shares jumped 24 percent in after-hours trade on Monday on earnings figures indicating that original programs and other tactics are luring viewers to the streaming Internet video service.

Netflix tops 30 million users worldwide

Oct 25, 2012

Netflix said Thursday it now has more than 30 million subscribers worldwide, including some five million outside the United States as the Internet video service pursues a global expansion.

Netflix adds to original shows with Sony deal

Oct 15, 2013

Netflix on Monday announced a deal with Sony to create a psychological thriller series for the online streaming and DVD service, ramping up original programming to win subscribers.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

3 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

10 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

13 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

Simplicity is key to co-operative robots

A way of making hundreds—or even thousands—of tiny robots cluster to carry out tasks without using any memory or processing power has been developed by engineers at the University of Sheffield, UK.

IBM posts lower 1Q earnings amid hardware slump

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

Down's chromosome cause genome-wide disruption

The extra copy of Chromosome 21 that causes Down's syndrome throws a spanner into the workings of all the other chromosomes as well, said a study published Wednesday that surprised its authors.