Netflix Surpasses 20 Million Subscribers
When I heard this story, it made me wonder where the numbers would be if Netflix hadn’t added the option to watch movies and television shows online – because that, my friends, is where all services are headed, no doubt about it.
The Hollywood Reporter reports that Netflix has surpassed 20 million subscribers, a total that caps off a growth spurt so strong that it has surprised even the company’s top management, while providing more cash to satisfy the hunger for increasingly expensive streaming content.
Netflix has also reported that their fourth-quarter net income increased 52% to $47 million on revenue that grew 34% to $596 million. The company also added 3.1 million subscribers in the quarter, putting it past the 20 million mark by 10,000. Those totals were enough for it to overtake Sirius XM and DirecTV as the No. 2 subscription media business in the U.S. behind Comcast.
Netflix has also predicted, with numbers like that, it could end the current quarter with as many as 22.8 million subscribers, or 23.1 million if Canada is included.
CEO Reed Hastings and CFO David Wells wrote in a letter to shareholders:
“More subscriber growth enables us to spend more on streaming content, making the Netflix service even better in 2011.”
Netflix has also reportedly said that it will expand beyond the U.S. and Canada, though executives haven’t yet said which part of the world it intends to conquer next.
Hastings and Wells also wrote:
“We think our subscriber growth in any given geography will follow the S curve of adoption, and we are excited to still be in the accelerating phase of the S curve today.”
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