Netflix quadruples profits as streaming industry booms

by Andrew Roach on July 23, 2013

When you try and think of one name linked with the growing video streaming industry, Netflix is often what pops into mind.

With the streaming industry now one of the most sought after services in every household, it means business is booming for Netflix who managed to quadruple their earnings over the past 3 months.

The subscription based giant announced the news after waves of new customers flocked to the service to view the new series of the resurrected sitcom Arrested Development.

Despite the strong financial performance in the last quarter, the firm was surprisingly hit by a drop in shares after less subscribers were found to sign up within the US.

Many people had been anticipating what results might come out of the announcement especially following the re-launch of Arrested Development exclusively on Netflix earlier this year.

A surge in subscribers was anticipated with the TV series having maintained strong fan following despite it being cancelled back in 2006.

Globally, the firm increased their subscriber base substantially acquiring 1.2million new subscribers over the last 3 months.

This brings their total membership tally to a staggering 37.6 million subscribers – that is now more than the entire population of the country.

But the figures for subscribers were a little less than anticipated within the US where only 633,000 new members signed up to Netflix which as some way short of the 880,000 being predicted by analysts.

This was enough to send the company’s shares falling on the Nasdaq where they dropped 4% after hearing the announcement.

Despite the market falls, Netflix’s overall figures continued to show how far the internet streaming platform has come in the last 12 months.

The company reported profits of $29million and a total of $1.07bn which was 5 and 4 times larger than the respective figures posted this time last year.

With more and more people looking to the internet to watch their favourite shows, it seems like Netflix is going to be in our homes for a long time to come.

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