WHOOSH: Netflix Blasts Past 40 Million Global Subscribers in Third Quarter

Posted: October 21, 2013 | Author: Pundit Planet | Filed under: Economics, Entertainment | Tags: Arrested Development, Emmy Award, House of Cards, Netflix, Orange Is the New Black, Reed Hastings, Streaming media, Subscription business model |Leave a comment

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Andrew Wallenstein reports: Netflix added 1.29 million subscribers in the three months ending in September, according to the third-quarter earnings report issued Monday.

Netflix stock soared in after-hours trading approximately 10% on news of the growth. In a move that could also be significant for Netflix’s stock, the streaming service also announced that it would accelerate its schedule of spending on original programming.

That brings Netflix’s domestic streaming audience to 31.9 million. Together with the addition of 1.44 million international subs, that brings Netflix’s global sub base to over 40 million.

Netflix’s own guidance for the third quarter was 30.5-31.3 million domestic subs and 8.3-9 million international subs; street consensus was 31.1 million and 8.7 million respectively.

Netflix may have been helped by positive buzz for “Orange is the New Black,” a comedy series that represented the streaming service’s latest original on the heels of “Arrested Development” and ‘House of Cards.”

In a letter to investors, CEO Reed Hastings credited the growth to both “Black” and the Emmy win for “house of Cards,” as well as the year-over-year comparison with a quarter that saw the Summer Olympics suppress Netflix viewing levels.

Revenue rose to $1.1 billion. Earnings per share was 52 cents.

Variety – Andrew Wallenstein Editor-in-chief: Digital