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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