Netflix shares surge as membership numbers climb (Update)

January 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: Netflix gains 630K subscribers as 2Q earnings soar

Related Stories

Netflix shares soar as viewer numbers climb (Update)

October 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

April 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

Volumetric 3-D printing builds on need for speed

December 11, 2017

While additive manufacturing (AM), commonly known as 3-D printing, is enabling engineers and scientists to build parts in configurations and designs never before possible, the impact of the technology has been limited by ...

Tech titans ramp up tools to win over children

December 10, 2017

From smartphone messaging tailored for tikes to computers for classrooms, technology titans are weaving their way into childhoods to form lifelong bonds, raising hackles of advocacy groups.

Mapping out a biorobotic future  

December 8, 2017

You might not think a research area as detailed, technically advanced and futuristic as building robots with living materials would need help getting organized, but that's precisely what Vickie Webster-Wood and a team from ...

0 comments

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.