Netflix finishes 2013 on a high note with 2.33 million new domestic subscribersBy Shawn Knight
Netflix finished 2013 with strong financial results that topped Wall Street expectations in addition to an influx of new domestic subscribers. Specifically, the company ended the three month period with $1.18 billion in revenue and earnings per share of $0.79, up from the $945 million in revenue and $0.13 per share during the same period a year earlier.
The company also added 2.33 million new domestic subscribers during the fourth quarter which brings the total user base in the US to 33.42 million. When international markets are factored into the equation, Netflix now has more than 44 million paying subscribers.
Netflix finished the year near the top of their own estimates for subscribers and now boasts more members than HBO. Some analysts believe Netflix is nearing the saturation point for home streaming so to keep things moving in the right directly, the company is experimenting with some new price points and already has 4K content in the works.
Things weren't always so peachy for Netflix, however. Just a little over two years ago, the streaming video provider was dealing with backlash from an unexpected price increase and the decision to spin off their DVD-by-mail service (and then backtrack on that decision) that sent subscribers running and share value plummeting.
It certainly took some time but CEO Reed Hastings made the necessary changes and was ultimately able to smooth things over. That whole episode is now but a distant memory in the eyes of most.