Netflix subscriber growth propels stock to new heights

[Shawn Knight]

Netflix may have missed the mark in terms of quarterly earnings per share but the company more than made up for it with subscriber growth that far exceeded expectations.

The streaming media company on Wednesday reported revenues of $1.57 billion for the first quarter, or $0.38 per share. Wall Street, meanwhile, had expected earnings of $0.69. For comparison, Netflix reported $1.27 billion and $0.86 per share during the same period a year ago.

During the first three months of 2015, Netflix added an impressive 4.9 million new subscribers which brings its total subscriber count to more than 65 million worldwide. Analysts were expecting roughly 4 million new sign-ups.

Netflix shares hit an all-time record $534 in after-hours trading on the news, a jump of 13 percent over what it was trading at when the market closed on Wednesday.

Ad-free, on-demand programming represents the lion’s share of Netflix’s earnings but the DVD-by-mail service that the company started with way back in 1997 is still alive and kicking. Netflix said that service has 5.5 million members and generated $85 million in revenue during the quarter.

Much of Netflix’s success in recent years can be credited to its original programming. Commissioned in 2011 with the first season debuting two years later, House of Cards starring Kevin Spacey is by far the company’s biggest draw. Netflix has also developed a solid following for Orange is the New Black. The third season of that show returns in June and has been picked up for a fourth season.

Image via Fun Mozar

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https://www.techspot.com/news/60381-netflix-subscriber-growth-propels-stock-new-heights.html

 

[amstech]

Karma.
Remember renting a scratched or dirty DVD/VHS for $6 a movie, and paying a 5$ late fee?
Where are those stores now? Their closed.

 

[cmbjive]

Karma.
Remember renting a scratched or dirty DVD/VHS for $6 a movie, and paying a 5$ late fee?
Where are those stores now? Their closed.

The minute streaming became possible over the Internet, the brick and mortar video stores should have changed their model. Welp, sleeping dogs lie.

By the way, it's "They're closed", but I still agree with what you've written.

 

[amstech]

The minute streaming became possible over the Internet, the brick and mortar video stores should have changed their model. Welp, sleeping dogs lie.

By the way, it's "They're closed", but I still agree with what you've written.

I was just being smarta$$.
I know the correlation between the two is meek at best, just sounded good in my head.

 

[RustyTech]

Good! with Netflix releasing even more great shows (originals), HBO and the like can die as well.
...but actually I think HBO is making sure they have a streaming option...but a bunch of other networks don't cuz they're just "fat cats"!

 

[tipstir]

As long as Dolby Surround HD on Netflix run smooth I have not complaints about the service except for the lack of some missing titles. But Hawaii Five O New Series sounds and looks good enough in HD!

 

[wiyosaya]

This is good news.

As I see it, HBO Now is overpriced even if you do get some movies earlier; if I were a fan of any of HBO's original series, I would opt to wait until they show up elsewhere.

Right now, my wife and I stream a movie once a week, and "our list" is long enough for us to keep going for probably a year or more. We particularly enjoy the independent and foreign films that Netflix offers; for us, it is like having our own art house movie theater in our living room.

I also enjoy the Dolby Digital+ sound tracks that the Windows 8.1 app offers as it is a bit of gravy on top of everything else. I would love to have one of the better DTS sound options, but I cannot complain about DD+