Netflix shares surge as membership numbers climb (Update)

Jan 22, 2014
The Netflix company logo is seen at headquarters in Los Gatos, CA on, April 13, 2011

Netflix shares jumped Wednesday after the streaming television and film service reported strong earnings and a surge in membership.

Shares of California-based Netflix were up more than 17 percent to $391.39 in after-market trades that followed release of earnings figures for the final quarter of last year.

The number of Netflix members grew by 2.33 million to top 44 million and the rate at which it climbed was expected to continue in the opening months of 2014.

Netflix ended last year with 33.42 million members in the United States and a total of 10.93 million members in other countries, according to a letter to investors.

"Our domestic growth is very strong, much of which should be attributed to the tailwind of Internet video growth in general," Netflix said.

"We plan later this year to embark on a substantial European expansion," the company continued, pointing to a "big international opportunity for Netflix."

The company reported net income of $48 million on revenue of about $1.17 billion as compared with $8 million in profit on $945 million in revenue in the closing quarter of 2012.

Netflix said that it will expand investments on original programming given the success of shows such as "House of Cards" and "Orange is the New Black."

The company is exploring the potential of tiered pricing plans, but stressed that existing members would get "generous grandfathering" of deals already in place.

Explore further: Two more former Sony workers sue over data breach

add to favorites email to friend print save as pdf

Related Stories

Netflix shares soar as viewer numbers climb (Update)

Oct 21, 2013

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.

Ahead of the Bell: Netflix to unveil 1Q results

Apr 23, 2012

(AP) -- Investors will be focusing on how many customers Netflix has been adding and how much money the company has been losing when the video subscription service releases its first-quarter results.

Recommended for you

2012 movie massacre hung over 'Interview' decision

36 minutes ago

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

7 hours ago

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

Atos shares soar after Xerox acquisition

9 hours ago

Shares in French tech firm Atos soared nearly five percent on Friday as traders cheered the news it had bought the IT wing of Xerox for more than $1 billion.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.