Netflix surprises with profits, adds 2.05 million new US subscribers

Some people in 2012 were ready to write off Netflix. The online video streaming service was seen by many as vulnerable to increased competition from Hulu, Amazon Video and more. There were even rumors that Microsoft was thinking about buying Netflix.

Today, Netflix surprised analysts when it announced its fourth quarter 2012 financial results. The company said that for the last three months of the year it added a whopping 2.05 million subscribers to its streaming service in the US, well ahead of what the company has added in the last several quarters.

Netflix now has 27.15 million streaming subscribers in the US, of which 25.47 million are paid subscribers. It also added 1.81 million international subscribers, bringing its overseas total to 6.12 million, of which 4.89 million are paid. Netflix added, "Our holiday season was particularly strong, driven by consumers buying new electronic devices, including tablets and smart TVs."

Analysts were expecting that Netflix would record a loss for the fourth quarter. Instead the company revealed a profit of $7.9 million for the quarter, with revenues of $945.2 million, which was also ahead of estimates. The company is going to launch a number of exclusive TV series in 2013, including the political drama House of Cards in February and the long awaited revival of Arrested Development in May.

Source: Netflix | Image via Netflix

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22 Comments

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Don't get why most people complain not having Netflix in their country, for what I am aware in the EU, our TV providers deliver digital TV. Live streaming and streaming previously aired shows to phones, tablets, tvs and computers. (altho i'm still waiting for the app on WP8 ;()

neowin little off saying it's only an online streaming company yeah well the blu ray selection rocks. streaming. no. I'd say maybe 5 years from now it's be near quality provided everyone was on fiber and 1 gbps right now best one here is maybe 40 mbps and Vudu has netflix beat already.

Blackhearted said,
Netflix can surprise me more buy actually adding more to the anime selection instead of letting it all slowly and steadily disappear.
in English or actually dubbed. can't stand the english dubs. totally absurd

I gotta say when Netflix first came out in Canada the selection was terrible and I stopped after the trial. But then I renewed once I saw their selection of latest movies and tv episodes went way up in the last half year. Top Gear episodes ftw.

What the article says, "Netflix surprises everyone by adding 2 million new customers last quarter!"

What the article is missing, "2 million new subscribers discover Netflix has nothing relevant or worth watching!"

spacer said,
...What the article is missing, "2 million new subscribers discover Netflix has nothing relevant or worth watching!"

According to you and that's called an opinion!!!

spacer said,
What the article says, "Netflix surprises everyone by adding 2 million new customers last quarter!"

What the article is missing, "2 million new subscribers discover Netflix has nothing relevant or worth watching!"

You must be using a different Netflix, mine is awesome.

spacer said,
What the article says, "Netflix surprises everyone by adding 2 million new customers last quarter!"

What the article is missing, "2 million new subscribers discover Netflix has nothing relevant or worth watching!"

I agree. When I had a netflix Subscription I found some good stuff on top but after that all I found was really old crap, nothing really new. Now Amazon Prime on the other hand I think is better.

I don't get it. It seems like Netflix is the most relevant source of TV and movies for generally everyone. It's almost a verb; "Just Netflix it, man!"

This is nice and I'm happy for them but how about, oh I don't know, maybe we can get access to Netflix in more countries? I hate all these US only services.

Why not have a business in your country that provides a similar service? You have your own phone companies, cable companies, and internet providers. It just sounds lazy to not only expect US businesses to extend globally, but to hate them for not doing so.

Joshie said,
Why not have a business in your country that provides a similar service? You have your own phone companies, cable companies, and internet providers. It just sounds lazy to not only expect US businesses to extend globally, but to hate them for not doing so.
My guess is it has more to do with content than service. Hopefully, the content owners start embracing a worldwide digital distribution. I'm sure Netflix would love to service other countries.

Exactly, it's about the content. I want movies and shows from the US. I can get local content just fine, it's not the content I want though.

Kirkburn said,
http://en.wikipedia.org/wiki/Netflix#International ... I am using it all the time in the UK. It's not US only, though obviously not global - but it's not easy to secure licensing rights around the world.

I'm aware it's in the uk and Canada as well, my point still stands though. There are too many of these media services that target only a small part of the world. The content owners need to start letting them go more global.

GP007 said,

I'm aware it's in the uk and Canada as well, my point still stands though. There are too many of these media services that target only a small part of the world. The content owners need to start letting them go more global.


Well a negative attitude about it won't get anybody anywhere. It's not like this is the sort of thing that can be corrected by the "free market". Competitors would have just as much trouble achieving the same end, and there's no conceivable way for legislators to somehow make creative content less 'owned' by their owners without a nightmare of side effects.

This isn't about whining at content owners. This is about figuring out how to sell them on the idea. Whining is for children and people with political opinions.

GP007 said,
This is nice and I'm happy for them but how about, oh I don't know, maybe we can get access to Netflix in more countries? I hate all these US only services.

They're not US only, and have actually just expanded. I occasionally use Netflix on Apple TV in Sweden now. I'd agree with you a few years ago, but they actually seem to be in a more expansive phase right now.