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Netflix up 25% after hours, beats revenue expectations, 2M new U.S. subs

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Guevara

Member
Netflix had a stellar fourth quarter, posting revenues and subscriber numbers well above analyst estimates. That has got investors excited again, driving the stock up 25 percent in after hours trading.

In its fourth-quarter 2012 earnings report, the company announced $945 million for the quarter, up from $876 million last year. Wall Street’s consensus forecast for the quarter was $935 million. It also reported earnings of 13 cents share, compared to earnings of 64 cents a share in the same quarter last year. That was well above analyst expectations for a loss of $0.12 a share.

As in previous quarters, much of Wall Street’s focus is on Netflix’s domestic subscriber growth. That’s especially true for the fourth quarter, which is typically the biggest for adding new users, thanks to users signing up during the holidays and receiving new, Netflix-compatible gadgets as gifts. Netflix failed to disappoint, as it added 2 million U.S. subscribers for the quarter, compared to 220,000 in the prior year’s fourth quarter. It’s above its own forecast of 1.3 million to 2 million new adds during the period.

Overseas, Netflix added 1.8 million new subscribers, bringing its total customer count overseas to 6.1 million. That growth has pushed international revenue over $100 million for the quarter. Meanwhile, subscriber losses in its DVD business continued to slow, as it has 380,000 few subscribers in the quarter. But that’s below the loss of 2.76 million a year ago.

http://techcrunch.com/2013/01/23/netflix-beats-the-street-reports-fourth-quarter-revenues-of-945-and-2-million-new-subscribers/
 

jagowar

Member
I think that disney deal got quite a few people to come back.... it was what got me to resubscribe. Not that its terribly great right now but I think there is enough to entice quite a few families to subscribe but when the deal fully takes over in a few yrs Netflix could be close to unstoppable.
 

otake

Doesn't know that "You" is used in both the singular and plural
About to cancel. Too few movies. Too few everything I like. Lots of garbage.
 

gutshot

Member
Awesome. And with House of Cards and Arrested Development coming out this spring, those numbers should continue to go up.
 

RJT

Member
I love how Reed Hastings isn't afraid to make tough decisions that are important for their long term sucess, regardless of what Wall Street thinks. Breaking up DVD and streaming subscriptions was the right thing to do (Quickster was an awful idea though...)
 

Divvy

Canadians burned my passport
It's well deserved. I'm happy to see them doing well despite having so many enemies.
 
is there something (other than specific studio deals) preventing Netflix from having a 'premium streaming' account option where new releases are readily available?

I'd pay some extra money per month to get brand new releases streaming upon release.
 
I've been very happy with it but I typically use it for TV shows and documentaries. If you're joining for movies, it's still not a great for that.
 
I'm in the UK and netflix is relativly new here. Iv been using the US one for a few month now and I'm blown away.

It may be old news to some of you but the content on it is perfect for me.
 

Matt

Member
is there something (other than specific studio deals) preventing Netflix from having a 'premium streaming' account option where new releases are readily available?

I'd pay some extra money per month to get brand new releases streaming upon release.

That fact studios would never agree to such a plan, and even if they did it would be so expensive as to be impractical.
 
The algos are doing quite a number on the stock.

They are running negative free cashflows, so if borrowing gets more difficult or they can't start generating more cash, things will get ugly fast.
 

TheMan

Member
Good to see them doing well after all the doom-and-gloom.

yeah, i remember when every article about netflix was bad news. i'm a happy netflix streaming subscriber and i'll continue to be for a long time (or until something better comes along)
 
Especially since Disney, and Netflix have a streaming deal now. Starz is going to be sold off soon anyway.

Oh snap. To whom?

I doubt it. With Netflix's recent dealings, it seems companies are willing to play ball.

hard to build the kind of base and technology structure that Netflix has, not to mention the subscriber numbers. I think content producers looked at how blah Hulu+ has been and realized they can't really match Netflix feature set or subscriber base. Netflix is probably offering slightly better royalty deals than they were before Starz left.
 

jagowar

Member
Comcast, and News Corp/Fox, seem to be the favorites thus far.

This is the first I've heard of starz being up for sale but I would not be surprised if they just die off. Losing disney hurt them bad from a content perspective and there are rumors netflix is going after their only other major deal in sony pictures. If netflix gets that too starz has almost nothing to offer any buyer.
 

UrokeJoe

Member
Super early subscriber and loved them for a long time, but haven't been a subscriber for the last couple of years.

Good for them, hope they do well in this long game.
 

GK86

Homeland Security Fail
hard to build the kind of base and technology structure that Netflix has, not to mention the subscriber numbers. I think content producers looked at how blah Hulu+ has been and realized they can't really match Netflix feature set or subscriber base. Netflix is probably offering slightly better royalty deals than they were before Starz left.

Pretty much. The Hulu experiment will probably end soon as well. I'm glad Netflix won the battle against the studios.

This is the first I've heard of starz being up for sale but I would not be surprised if they just die off. Losing disney hurt them bad from a content perspective and there are rumors netflix is going after their only other major deal in sony pictures. If netflix gets that too starz has almost nothing to offer any buyer.

As far as I know, Liberty Media spun off Starz recently(like last week). With the hopes/purpose of selling it. It is currently valued at around $1 billion.

I wouldn't jump to quick on Netflix being the only game in town for the Sony deal. I think Amazon will jump in the mix. They can't continue to let Netflix stock up on exclusive deals.

Even without the Sony/Disney deals, Starz would be a nice pick up for Comcast/News Corp. They don't have premium movie channels.
 

davepoobond

you can't put a price on sparks
im surprised after the bumbling mistakes their stupid ceo has been making. he must have wised up and learned how to stop having opinions.
 

LuCkymoON

Banned
is there something (other than specific studio deals) preventing Netflix from having a 'premium streaming' account option where new releases are readily available?

I'd pay some extra money per month to get brand new releases streaming upon release.

Why don't you just rent the new releases through Amazon or Vudu?
 

davepoobond

you can't put a price on sparks
They fumbled the execution, but dumping the disc business was and still is a good idea.

they're still too scared to add games to their offering.

discs, as long as they aren't LOSING money on it, they should still offer it as its a backup way of expanding libraries that they cant always have digitally. some movies/shows will just never be on streaming.


over the years i barely even use the discs. i watch tv shows 99% of the time. maybe 1 movie a month or two.
 

jagowar

Member
As far as I know, Liberty Media spun off Starz recently(like last week). With the hopes/purpose of selling it. It is currently valued at around $1 billion.

I wouldn't jump to quick on Netflix being the only game in town for the Sony deal. I think Amazon will jump in the mix. They can't continue to let Netflix stock up on exclusive deals.

Even without the Sony/Disney deals, Starz would be a nice pick up for Comcast/News Corp. They don't have premium movie channels.

I even bet starz will make a last ditch bid at that deal too.... but it seems like netflix has more to bring to the table than anybody right now. They have almost caught hbo in total subscribers and likely will soon with the growth they are seeing while hbo has been relatively flat. I really don't see amazon growing in the same way netflix does since their service is more tied as an addon to a prime subscription.

That said the idea of an exclusive agreement seems like something that will go away soon, with all these services competing for the same content it would seem like the content producers can make more money selling to everybody at a lower rate. Similar to how the epix deal worked out where they are starting to be on every service now that the 2yr exclusive with netflix is over.
 

Tobor

Member
they're still too scared to add games to their offering.

discs, as long as they aren't LOSING money on it, they should still offer it as its a backup way of expanding libraries that they cant always have digitally. some movies/shows will just never be on streaming.


over the years i barely even use the discs. i watch tv shows 99% of the time. maybe 1 movie a month or two.

The window on game discs is closing, there's no reason to mess with it now.

The best move was to spin off the disc business or sell it while it still had value. I wanted them to sell it, but the move was mishandled, so here we are. They'll ride it out for another year or so and shut it down. Missed opportunity.
 

davepoobond

you can't put a price on sparks
i suppose re-thinking about it it is definitely too late to add games as rentals, but they should have launched it back when they were thinking about it, which is more what i was referring to in my head anyway.


dont get me wrong, im glad netflix turned around a bit, so i can at least watch law and order everyday for the rest of my life.


i would have been fine if they spun off the disc business, but the deal killer was separate payment methods and separate ratings.
 

jakncoke

Banned
I wish someday that It'd be all on instant watch and no dvd/blu-ray or whatever. I know this will screw some people but idgaf about those people. Right now I can get 6 dvds a week on 3 plan, so slow. Would get rid of DVD if Instant Watch content selection was more in depth.
 
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