Netflix posts slight loss, shares drop

Netflix released its Q1 2012 financials today, revealing a slight loss of $5 million for the quarter. The company posted a revenue of $870 million for the quarter (resulting in a loss of eight cents per share), representing a small decrease from Netflix's Q4 2011 revenue of $876 million.

The company's letter to investors, which can be viewed here, also revealed that the company has added three million new subscribers to its streaming service, adding to its industry-leading total, now at 26 million subscribers. Additionally, per-member viewing hours were at record levels for a quarter, although these numbers were not specifically given in the letter. Netflix spent a large portion of the letter describing the competitive landscape, as competitive threats have emerged from Hulu, Amazon, HBO and Comcast (the letter specifically listed the threats of streaming programs available on the Xbox 360). The company also saw another decline in its disc-based service, losing 1.08 million subscribers (for a total of 10.09m current disc-based subscribers), although this number was better than company expectations.

A similar loss is also expected for Q2 2012, with the company predicting a net loss in the range of $6 to $8 million. Netflix downplayed the expected loss, saying the profits of its domestic business are being used to better position the company in the international marketplace, which the company believes will allow it to license global content rights at more economical rates.

Reaction to the company's quarterly financials on Wall Street has been negative, as the company has seen its stock plummet roughly 16% in after-hours trading. The company's stock ended regular trading hours at $101.84, but after-hours trading is currently at $85.18.

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Tried it on my PS3 for a couple of months but dumped it out of sheer frustration. The app would only log-in one time in three, and often even then it would be flakey in use. If it was free, fine, but I couldn't justify paying for a service that didn't work most of the time.

I have the 2 disk service... and won't change that to streaming which would be better till Comcast offers me unlimited bandwidth AND when the title is released then its available to download right then and there. My other complaint is about the disks, when a movie releases as in sold in a store like Walmart, I can't get the sucker for a full month after release and even then I'm sometimes on a few week wait which is lame! SO the more that drop disks the better for me but still they need to release them that day and not wait a month no matter what the movie industry wants!

Blame Warner, Sony, etc for delays. They want you to buy the movie plus they'll get money from Netflix still so it's a double win for them.

As for Comcast - they win, that's the whole point why they do such things!

We cancelled their service because they made it IMPOSSIBLE to work on the TV. Having to log in every time is ridiculous using the stupid remote. Their previous method was much better.

The company also saw another decline in its disc-based service, losing 1.08 million subscribers (for a total of 10.09m current disc-based subscribers), although this number was better than company expectations......

well sure because thats where their primary focus should be. the physical element. They aren't doing that so hence. a loss..

I dropped them in Canada ever since they said they would never support the blackberry playbook.. I just hate companies that dont listen to their customers and support all platforms instead of just telling people what platforms to use..

They have been adding a lot more higher quality content recently. Right now, a ton of good older movies and concerts have been added. Of course, it all depends on your opinion of good

"added three million new subscribers to its streaming service, adding to its industry-leading total, now at 26 million"
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The only reason they get so many "new" subscribers is due to the fact Netflix seems to come with just about every piece of hardware or tv sold. I tried their service once but was disappointed in the lack of movies I wanted to watch. Most of it was old movies.

jd100 said,
"added three million new subscribers to its streaming service, adding to its industry-leading total, now at 26 million"
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The only reason they get so many "new" subscribers is due to the fact Netflix seems to come with just about every piece of hardware or tv sold. I tried their service once but was disappointed in the lack of movies I wanted to watch. Most of it was old movies.


If you look at the letter to investors, their domestic paid subscriptions increased from 20.15 to 22.02 million, and their profit from streaming users increased from $52 million to $67 million. So any bundling is probably not making that big of an impact.