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Netflix sees record growth, adds 3.3 million subscribers in a quarter

By Scorpus · 8 replies
Jul 16, 2015
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  1. Netflix is doing pretty well for themselves at the moment, announcing record subscriber growth and decent financial results for the second quarter of this year as they continue to dominate the video streaming market.

    In Q2 2015 Netflix gained a record 3.3 million subscribers, nearly double the 1.7 million subscribers the company added during the same quarter last year. Netflix now has 65 million subscribers in total, 42 million of whom reside in the United States.

    The company's financial results were as expected: $1.65 billion in revenue for $26 million in net income. This equates to a 23% rise in revenue compared to the same period last year, and although profit dropped year-on-year, Netflix is currently more focused on gaining subscribers than making buckets of cash.

    The good news led to a 10 percent rise in Netflix's share price during yesterday's after hours trading period. In 2015 alone, the company's share price has more than doubled, which is why Netflix also announced a seven-to-one stock split to bring the price back to around $100.

    As for the future, Netflix is hoping they can carefully push customers to more expensive plans over the next few years. With the service's content library increasing each quarter, Netflix may need to explore increasing the price of plans or introducing a new pricing structure for premium content.

    That's more of a long term proposition for Netflix though; for now, the company is planning on spending $1 billion on a big marketing push in 2016 to encourage new users to sign up. And of course, the production of Netflix Originals such as House of Cards and Daredevil will continue so that the service remains attractive to existing subscribers.

    Permalink to story.

  2. wiyosaya

    wiyosaya TS Evangelist Posts: 3,559   +1,924

    I wonder if this indicates a trend....
  3. The trend started years ago when people started paying attention to their cable & satellite bills.
    H3llion and amstech like this.
  4. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 3,151   +1,411

    I was so crazy wrong about this company about a year ago. I think I said on these forums that Netflix didn't have a checkbook big enough to pay for the content people wanted, and they were going to get passed up by the likes of Apple, Google, MS, and HBO who would be able to start a video streaming service with better content only they could afford. Remember when Netflix only had old movies no one wanted to watch?

    Then Netflix gave the finger to the studios who were asking for piles of money for old shows and said 'F you, we'll make our own shows.' 3 seasons of 'Orange is the new Black' and 1 big 'House of Cards' later, they've got a whole catalog of original content and millions of new subscribers.

    Way to get it done Netflix... I thought you'd be on the sideline as rich company took over what you pioneered.
    Hexic likes this.
  5. Nitrotoxin

    Nitrotoxin TS Addict Posts: 135   +91

    Bye bye Mr. Cable co... R.I.P. and don't let the door hit you in the *** on the way out..
  6. I remember MilwaukeeMike...I remember (I was just a guest back then). It's really good to see a company, that provides a serves that's needed so badly, succeed.
    This multi-tear plan initiative could be catastrophic though. Isn't this the reason why people HATE cable companies?
  7. wiyosaya

    wiyosaya TS Evangelist Posts: 3,559   +1,924

    Don't forget new shows like Daredevil and, perhaps, Sense8.

    The thing about Netflix is, at least as I see it, the sheer volume of subscribers. Coupled with the low monthly fee, it is this that is giving them the success that they are enjoying.

    All the other "steaming" (yes, the spelling was intentional :) ) services that are popping up like weeds is that their basis is in the "cable" model, and IMHO, that makes them way overpriced for what they are providing; however, I think they think that their market will continue to pay their exorbitant prices. The latest farce seems to be that crApple's steaming service in the US is going to offer broadcast networks for something like $10 to $40 per month. Who on earth would pay that much for material you can get for free over-the-air?

    What these late-to-the-table steaming services are offering is essentially no different than the cable model and is in some cases more expensive than the cable model - on a price per channel basis, Sling falls into that category in my opinion. Most cord cutters - at least myself anyway - cut the cord because of the high prices that they were paying and only viewing a small fraction of the content delivered. While I still cannot watch all that is on Netflix, at least I am only paying $8/mo for it rather than the $85/mo I was paying for dish. My total TV bill with Hulu, Prime, and an iTunes show for the wife is currently $20/mo. In the 16-months I've had it, I've saved over $1,000 and the thing is that my wife and I find the material that we are getting superior in that Netflix has a large number of independent and foreign movies that we like and can watch any time we want, and for other material that we like, we only have to wait a while longer to get it - take, for instance, the last seasons of Covert Affairs and White Collar.

    In the long run, I would be very surprised if the new steaming services will be anywhere near as successful as Netflix given what they are charging vs what Netflix is charging.
  8. No bye bye, Cable just yet, telcos and Cable companies still own a lot of the conduits in which we use to access the information highway.
  9. H3llion

    H3llion TechSpot Paladin Posts: 1,649   +414

    in UK cable bills are super cheap, I mean sure 6 to 15 quid a month is a good savings made but still, the real problem is the £40+ a month for a decent Internet speed.

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