Netflix has reported its third quarter numbers and they are up across the board. Streaming video certainly seems to be the future.
While Netflix didn’t quite meet Wall Street expectations, and the stock dipped 2 percent in after hours trading because of it, revenue for the company reached a record high of $423 million. This is up 24 percent year-over-year, and up 4 percent from the second quarter of this year. The user base also increased to 11.1 million subscribers, which is up 28 percent year-over-year, and up 5 percent from the end of the second quarter of this year.
Not too long ago we reported that Netflix CEO Reed Hastings believes DVD had two years of life left, and going by his companies just released numbers, he may be right. NewTeeVee is reporting that in the Netflix earnings call yesterday, Mr. Hastings shared that 42 percent of Netflix subscribers streamed at least 15 minutes of one TV episode or movie during the third quarter, up from 22 percent for the same time period last year on a smaller user base.
Getting past the numbers and on to what the company has planned for the future, Mr. Hastings reported that the company is looking to expand internationally, but it will be only for its streaming service due to the complexities of foreign mail services. This will be the first time the company has offered a streaming-only subscription plan, adding credence to Mr. Hastings earlier comments that DVDs will become a smaller portion of its business.
While details were sketchy at best, Mr. Hastings also shared that the company is in talks to add streaming service to a major consumer electronics partner, but he did not name which manufacturer or device at this time. He did mention that other “game consoles” were talking with his company, but he did not name any names. Seeing as Netflix is already available on the Xbox 360, that only leaves the Sony Playstation 3 and Nintendo Wii as candidates.
Even though the company report didn’t meet the expectations of analysts, there is no denying that things are looking pretty good for the kind of rentals by mail.