Netflix’s total revenue tops $1.4 billion
In a quarter that included a major European expansion, Netflix’s total revenue tops $1.4 billion, but fewer than expected new consumers signed up.Netflix Inc. revenue climbed 27.5% and net income 86% in the third quarter, but the video streaming company fell short of its forecast for new customers. The e-retailer reported today that it added 3.02 million new customers in Q3; its forecast was 3.69 million.
Most the customers who signed up, 2.04 million, came from outside the United States. International streaming revenue grew 89% year over year and accounted for 28% of total revenue. In September, Netflix launched streaming services in France, Germany, Austria, Switzerland, Belgium and Luxembourg.
In their letter to shareholders, Netflix CEO Reed Hastings and chief financial officer David Wells also addressed the competitive threat HBO plays. News broke today that HBO will begin to offer HBO as a streaming service separate from any cable or satellite company. “It was inevitable and sensible that they would eventually offer their service as a standalone application,” they wrote. “Many people will subscribe to both Netflix and HBO since we have different shows, so we think it is likely that we both prosper as consumers move to Internet TV.”
For the quarter ended Sept. 30, Netflix, No. 7 in the 2014 Internet Retailer Top 500 Guide, reported:
•Total revenue of $1.41 billion, up 27.0% from $1.11 billion in Q3 2013. Total revenue for the nine months ending Sept. 30 is $4.02 billion, up 25.6% from $3.20 billion.