Netflix Reports $1.02 Billion In Q1 2013 Revenues, Announces New Streaming Plan
Netflix has reported their first quarter earnings for 2013 today. The net profit was $2.6 million (5 cents a share) and the company had their first billion dollar quarter at $1.02 billion. If you exclude the one-time charges, Netflix reported profits of 31 cents a share and profits rose to $131 million.
In terms of subscribers, Netflix added 2 million new U.S. streaming subscribers and 1 million new international streaming customers. Analysts were anxious to see the results after Netflix spent $100 million on the original series, House of Cards. Netflix now has over 30 million streaming subscribers, which is higher than what HBO has. Netflix’s stock price closed at $174.37 today, which is up 7%.
“The global viewing and high level of engagement with the show increased our confidence in our ability to pick shows Netflix members will embrace,” said Netflix in a statement.
Investors were concerned about subscribers joining Netflix for a month, watching all of the episodes of House of Cards, and then canceling. Netflix said that only 8,000 people did this with a free trial.
In order to increase revenues, Netflix announced a new $11.99 plan that would allow users to streaming content at up to four devices simultaneously. The current limit is at two devices.