Netflix profits soar beyond expectations
Friday, July 24th, 2009
Revenue for the second quarter of 2009 was $408.5 million, representing 21 percent year-over-year growth. Profits were up 22 percent.Netflix added 289,000 subscribers in the quarter to end June with approximately 10,599,000 total subscribers, achieving 26 percent year-over-year growth. That pushed the company’s share of U.S. households to about 9 percent, said Reed Hastings, co-founder and CEO of Netflix. The online video rental giant aims at reaching 12 million subscribers by year end.
On the other hand, Hastings said that no streaming-only services are currently planned. “When we talk to subscribers about streaming only, they want a lot of content,” and Netflix does not have the library to provide that yet. However, the company confirmed that investing in content licensing for streaming is still a priority.