Netflix ties Comcast for subscribers, downplays cord cutting

By on April 25, 2011, 9:51 PM
Netflix released its first quarter results today with a profit of $60 million on revenue of $719 million, up 88% and 46% on-year. The video streaming service added 3.6 million global subscribers (US and Canada) between January and March, pushing the company's total subscription count to 23.6 million. Some 22.8 million of those accounts are in the US, which is the same number that Comcast recently reported.

Considering the trend of media streaming, Netflix is poised to become the largest video service in the US. Again, that's in terms of raw subscriptions -- there's just no comparing revenue. Comcast reported a profit of more than $1 billion on revenue of over $9 billion in the fourth quarter of 2010, which boils down to roughly $132 a month per subscriber. Netflix pulled in just over $10 a month per subscriber.

Netflix partly attributes its recent growth to securing fresh content deals, noting that its agreement with CBS makes it the only online premium subscription service that offers shows from all four broadcast networks. The company detailed its latest arrangements with Fox and Lionsgate. It has obtained rights to Glee, Sons of Anarchy, Weeds, Blue Mountain State and exclusive syndication rights for Mad Men.

Interestingly, Netflix downplayed cord cutting by saying its service is "complementary" to traditional pay TV. "Recently, the CEO of [a cable company] characterized Netflix as 'rerun TV'. While we don't plan to use that line in our next marketing campaign, he is fundamentally correct," Netflix said. By offering previous seasons, the company said it contributes to the growth of the current season on pay TV.

Instead, Netflix believes its primary competition comes from Hulu Plus and Amazon Prime. It also believes that Dish Network is working to develop a substantial subscription streaming service under its recently acquired Blockbuster brand. The company also mentioned future concerns about TV Everywhere, the Web-based initiative backed by TV providers like Time Warner Cable and Verizon.

User Comments: 6

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taea00 said:

I've been without cable for a year due to Netflix. Netflix could charge double what they are now and I'd still pay for it over Cable. I'm excited over all the streaming competition too. Competition breeds innovation! I'm thinking about getting the Amazon Prime for both the streaming and the reduced shipping. Has anyone tried Amazon Prime or Hulu Plus? You could get all 3 and still be half of what cable is.

Guest said:

But where's the Android love..

The Netflix.apk leak installs but Netflix stops the streaming.

Guest said:

Netflix is pretty lame I think...Their movie content is so old. I can get fresher stuff off the net for free. Sometime in the future they maybe better but for now I'll save myself $9 a month :)

AnonymousSurfer AnonymousSurfer said:

Netflix is the bomb. I love being able to watch the movies and TV shows whenever I want. When they get the newer movies uploaded faster in the future, they will take over the industry.

Saintnsinner said:

I fired Comcast three months ago. Netflix has taken up the slack nicely, and Huluplus has kept me up to date with new shows like House and Tosh.0. As far as Hollywood is concerned most new movies are crap anyways. But the few good movies get mailed to my house by Netflix. I'm saving about 80 bucks a month over Comcrap.


NetFlix has no commercials .. wahooooo

Comcast Loaded with commercials paid programming, yuck yuck, that's why I kicked them to the curb, and FIRED them... take that Comcast you GREEDY people..... .

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