AfterDawn: News

Netflix gains 1.1 million customers in Q4

Netflix has reported its highest number of new customers in a single quarter in the company's history, adding more than 1.1 million new subscribers in the fourth-quarter. It took four years to hit 1 million subscribers after Netflix launched in 1999. Investors applauded as the company revealed its results for the quarter, including a 36 percent rise in the Q4 profits for the rental-by-mail service.

Netflix now has more than 12 million subscribers, with a boost in new subscribers in response to new plans that bundle the rental-by-mail service with unlimited video streaming over the Internet, for prices as low as $9 per month. The good news didn't stop there for investors either; Netflix management expects Q1 2010 to be even more successful, projecting between 1.2 and 1.5 million new subscribers by the end of March.



Fourth-quarter revenue climbed 24 percent to $444.5 million, missing analyst expectations by $1 million. The shortfall however was overshadowed by pledges from management to boost profit margins to 11 percent from its previous 10 percent target.

Netflix got a big boost in the fourth quarter when services available through the PlayStation 3 (PS3), while already being available through Xbox 360 and it is reportedly heading for the Wii console.

Written by: James Delahunty @ 27 Jan 2010 21:07

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• 10 comments

• kubapolak

  I'm still contemplating whether to buy into this service or not, but I just got mine PS3 so I might give it a whirl.

  27.1.2010 23:48 #1

• fgamer

  Good for them, it's going mainstream. Hopefully the increase in customers wont make them raise their prices..lets not get cocky.

  28.1.2010 00:40 #2

• Mr-Movies

  The streaming stand alones is boosting the subscriptions but there are problems with the lower end devices that only have a 250MB buffer as they don't work on all home networks, bandwidth is a big problem. But if you have a good connection with little jitter it works pretty good. Most of the streaming content is SD quality but they do have some 1080i and will have 1080p soon I was told by a customer rep the other day.
  
  Netflix's has also gotten better with their rental policies and if you have to wait for something they will send an extra movie to make up for it. I've enjoyed Netflix for many years and it is no wonder they barried Block Buster even with BB's local store advantage, just shows how bad and greedy BB's management is and why they have had to close so many stores lately.
  
  Netflix's was going to raise their rates due to the expense of Blu-Ray but didn't, they must have known that when times are tough it isn't a good business model to jack the rates. So I'm sure rates will go up some in the future hopefully not much though.

  28.1.2010 07:14 #3

• SProdigy

  You still pay an extra premium for the option to rent Blu-Ray. I think it's $3-4 extra, but still worth it since my BD player also uses Netflix streaming. Only issue is the wait on some BD titles, but no worse of a wait than when the service launched.

  28.1.2010 10:31 #4

• emugamer

  Yeah, I think the base package is $8.99/month. I'm paying $11.99 with Blu Ray. I only have the "1 out at a time" plan. This would have been an issue a couple of years ago (I used to get 3-DVD's at a time), but with unlimited streaming, I don't care anymore. It's well worth it.

  28.1.2010 12:04 #5

• TBandit

  I think this is due to Netflix expanding to the gaming consoles with the latest edition being ps3. I think they have a great idea of offering streaming in addition to renting so you can stream a movie while you wait.

  28.1.2010 12:11 #6

• NINVIN21

  Netflix VS Redbox
  
  I don't use that Crap Real men are Pirates.

  28.1.2010 12:13 #7

• SProdigy

  Originally posted by NINVIN21: Netflix VS Redbox
  
  I don't use that Crap Real men are Pirates.Actually with either one of those services you could see a movie faster than pirating it, unless you bought a bootleg copy of course.

  28.1.2010 13:20 #8

• Samsunged

  Originally posted by SProdigy: You still pay an extra premium for the option to rent Blu-Ray. I think it's $3-4 extra, but still worth it since my BD player also uses Netflix streaming. Only issue is the wait on some BD titles, but no worse of a wait than when the service launched.Some BD titles? All the newest ones. Netflix, if you get more customers, you got to get more copies. I'm about to go to Blockbuster if this continues.

  28.1.2010 18:38 #9

• hermes_vb

  They continue to expand, and there's no stopping them. Our local Hollywood Video just kicked the bucket two weeks ago. Blockbuster is always empty when I drive by. Maybe they are next.

  29.1.2010 00:22 #10