Netflix Earnings Released
Netflix released its earnings report for the second quarter today, as well as a 75% year-over-year increase in subscribers, having added 1.8 million in the quarter. The company has 25.56 million subscribers globally.
As far as the financials, the company reported $789 million in revenue for the quarter, up 52% year-over-year.
“We are happy to report that Q2 was another great quarter for Netflix,” the company told investors in a letter. “Streaming is continuing to grow rapidly, and with the recently introduced price changes, we’ll be able to further increase the scope and quality of our streaming content. At the end of the quarter, Netflix had over 25 million global subscribers, up 70% from 15 million just one year ago.”
“We’ve spoken frequently of how we are directing savings generated from declining DVD demand into additional streaming content and marketing. During the quarter, we substantially increased sequential spending on streaming content as titles from our new content deals (discussed below) became available for streaming. At the same time, though, we maintained a disciplined approach to what content we license and at what price, spending somewhat less on streaming content than we budgeted for in the quarter. Also, DVD shipments came in even lower than forecasted, in part due to the popularity of our streaming only plan.”
Here’s the picture of what Netflix is expecting for the third quarter, in terms of the subscriber mix between streaming and DVD services. The recently announced price hike will obviously impact this.
Netflix’s results were apparently not up to shareholders’ standards, as stock is down in after hours trading.