Surprise! Online TV is billion-dollar biz
Amazon takes on Netflix with free instant streaming
The distress with tech stocks7% of Americans subscribe to Netflix Netflix CEO Reed Hastings has chaired over a decade of soaring growth at his video flowing and rental company.
By Julianne Pepitone,
coach sunglasses, staff reporterApril 25, 2011: 7:03 PM ET
NEW YORK (CNNMoney) -- Netflix knocked over a new landmark Monday: It now has more subscribers than the largest wire TV operator in the U.S.
Netflix's global subscriber bottom grew almost 70% over the past year, to 23.6 million consumers. With that spectators, it dethroned Comcast (CMCSA,
cheap sunglasses, Fortune 500) for the country's biggest provider of subscription movie content. More than 7% of Americans now subscribe to Netflix.
Those details came out Monday in Netflix's (NFLX) first-quarter report, in which the company reported earnings of of $60.2 million, or $1.eleven a share. That's up from $32 million, or 59 cents a share,
cheap oakley sunglasses, a year ago.
Revenue rose 46% to $719 million. Both figures topped Wall Street estimates, but shares fell 2.5% in after-hours commerce on light forecasts for the second quarter.
Netflix said it expects income of 93 cents to $1.15 a share for the second quarter, lower than analysts' forecasts.
When you're a giant, growth gets harder.
Netflix said in its release that it expects subscriber growth to proceed at a fast mow for the rest of the year, but it warned that year-ago comparisons will get tougher in the coming dwelling.
The loosen also famous the emergence of new, competing services Hulu Plus Amazon (AMZN, Fortune 500) Prime.
More content: Netflix is hoping to war additional emulation with more unique content. Last month, the company announced it had bought its premier aboriginal show: "House of Cards," featuring Kevin Spacey.
"This represents slightly greater inspired risk than we've taken in the past, but we consider it's rational given the popularity of the original BBC show," Netflix said Monday in a "letter to shareholders" released alongside its earnings report.
Netflix will consider the purchase a success "whether 'House of Cards' is popular ample on Netflix so namely the fare we've paid is in line with that of other equally fashionable content on Netflix at the time," Hastings wrote in the letter.
The corporation said it hopes to "license two or 3 alike, but smaller deals" in the hereafter.
Netflix has also brokered deals with networks and laboratories. In its earnings release, the company confessed its recent handle with CBS "includes only a few on-air shows at present" -- but it also makes Netflix the only online subscription service to offer shows from entire 4 broadcast networks.
International concerns: Netflix fired in Canada late last year, and it finished the first quarter of 2011 with approximately 800,000 Canadian subscribers -- lower than the company had forecast.
"We are still studying the seasonality curve and nuances specific to Canada," Netflix said in its release.
The company had formerly said it expected $50 million in operating losses in the second half of the year for the international sector. Now, it forecasts $50 to $70 million in losses -- "which we are cozy with given the size of the chance."
On a post-earnings session call, many analysts' answers revolved nigh the position in Canada. Hastings shrugged off most of the queries, mentioning "it takes time" to develop exact file and forecast correctly in a new zone.
Hastings too said amplifying apps for Google's (GOOG, Fortune 500) Android operating system namely "a huge precedence,
discount oakley sunglasses," but he wouldn't remark further aboard a timeline.
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