Netflix Hits 23.6 Million Subscribers & 706 Million in Revenue in Q1 2011
I don’t normally post these types of earnings, but I thought it’s worth it since it’s pretty significant given that Netflix now has more subscribers than Comcast AND Sirius. With every week you hear about a new contender to the streaming websites, it’s impressive that they can keep growing. Next up, global domination.
- Netflix added 3.3 million subscribers in Q1 for a total of 23.6 million.
- Global revenue for Q1 was $719 million and $60 million in net income. The domestic operating margin increased to 16%, and earnings per share were $1.11.
- Despite rumors and guesses about the impact of the big streaming deals, Netflix says that the “…spending typically takes place over multiple years and the amortized costs of these deals is taken into consideration in our 14% operating margin model.”
- On the focus of Netflix’s content spending: “Recently, the CEO of an MVPD characterized Netflix as “rerun TV”. While we don’t plan to use that line in our next marketing campaign, he is fundamentally correct.“
- Netflix now has more than 800,000 Canadian subscribers, and is planning on expanding into a second and third international market in 2011 and 2012.