Netflix adds 3 million new subscribers in Q1 2013

Apr 22, 2013
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Netflix adds 3 million new subscribers in Q1 2013

Netflix posted up its Q1 2013 earnings today, and things are looking fairly good for the streaming service. They surpassed $1 billion in revenue for the quarter, and added three million new subscribers, two million of which are US users, bringing the total number of global subscribers to 36 million.

During the quarter, US streaming brought in $639 million in revenue, with international streaming raking in $142 million. The company's DVD business, while slowly falling off, is still seeing action, with $243 million in revenue. However, that's down from $254 million during the previous quarter, as well as $320 million during the same time last year.

As for profit, Netflix experienced losses in both operating and net income categories, with a loss of $32 million and $3 million, respectively. The company noted in a letter to shareholders that the loss was due to an "extinguishment of debt" that was connected to a bond refinancing back in February. Without that, the company would've netted $19 million.

Netflix brought up the company's own original series House of Cards, saying that the show gave the streaming company "confidence" in picking up shows that their users would enjoy. However, not as many people took advantage of Netflix's free trial offer as they were expecting. It turns out only 8,000 people used the free trial offer to watch House of Cards.

The letter to shareholders also mentions a new monthly plan that Netflix is planning to launch soon. To accommodate larger families with multiple devices in the house, Netflix is going to launch a new $11.99-per-month plan that will allow users to stream content on four devices at once, which is up from two on the regular streaming plan. No date has been set, but Netflix says that less than 1% of its user base will take advantage of the new plan.


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