Netflix is doing well, very well. And its improved earnings for the year so far are due to increased subscriber numbers and a huge rise in the number of subscribers watching streaming video via ‘Watch Instantly’.
Netflix Streaming
Netflix has been slowly and surely building up its ‘Watch Instantly’ service over the past couple of years. And subscriber numbers have been increasing in line with new features and increased content.
‘Watch Instantly’ is now available on a multitude of devices other than the humble PC. This includes set-top boxes, games consoles, TVs, Blu-ray players, and even the Apple iPad.
Netflix subscribers are responding by watching streaming content more often and for longer.
Q2 Financial Results
The Netflix financial results for Q2 2010 have now been revealed, and they show Netflix is on the cusp of a meteoric rise.
In the last three months alone, Netflix added one million subscribers, going from 14 million to 15 million in total. The majority of new subscribers are plumping for the $8.99-a-month plan which allows one DVD at a time but unlimited access to ‘Watch Instantly’.
Revenue for the quarter came in at an impressive $519.8 million, 27 percent higher than the same period in 2009. Net income also increased from 54 cents per share in Q2 2009 to 80 cents per share in Q2 2010.
61 percent of subscribers are now streaming more than 15 minutes of video via ‘Watch Instantly’, which is a huge increase on the 37 percent who did so this time last year, and a modest increase on the 55 percent who did so during the first quarter of 2010.
Netflix now expects to end the year with around 18 million subscribers.
Conclusions
Netflix is truly showing itself to be a company with a bright future. It’s ahead of the game in terms of offering streaming content, and with an international expansion starting in Canada later this year, I can’t see the momentum slowing anytime soon.
[Via NewTeeVee]
