Tag Archives: ReedHastings

Netflix added 3 million subscribers worldwide in Q1, will offer a 4-stream $11.99 plan

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Netflix added 3 million subscribers worldwide in Q1,

Netflix has reported its financial results for the first quarter of 2013, and in that period it's added over 3 million customers worldwide. Domestically it added 2.03 million customers alone, pushing its total number over 30 million (including trial users) in the US. That means it's passed HBO in paying subscribers for the first time ever, while notching $2.69 million in net profits on $1.02 billion in revenue for the quarter. Internationally there were over a million new sign-ups and it's planning to launch in a new European market during the second half of this year, which we should hear more about on its Q2 earnings call in July.

One change all users will notice is to its package of streaming plans, as CEO Reed Hastings mentioned an $11.99 per month option is incoming that will allow subscribers to stream as many as four videos simultaneously, up from the current official limit of two. There's some question over whether Netflix will begin to crack down harder on account sharing, but Hastings claims he expects less than one percent of users to opt for the new plan. The company is also continuing to test the personalized profiles we got a peek at during CES, and expects to roll them out "in the coming months." Another major note is that as it expands its suite of original content, it's shifting focus away from some of existing "bulk, nonexclusive" licensing deals and will let a major one from Viacom expire in May. Specifically referenced is content from Nickelodeon, MTV and BET, although it's negotiating for access to particular shows. In the future, its preferred option will be exclusive deals with the studios that produce the shows, like the one it announced earlier this year with Warner. Check after the break for a few more details, including updates on the progress of some of its original series.

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Source: Netflix Q1 Investors letter (PDF)

Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war

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Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war

Netflix isn't sinking, but it's certainly not the soaring brand it once was and has endured its fair share of struggles over the last several years. But, if you think Reed Hastings is shaking in his boots over encroaching competition you'd be wrong. The CEO says that Amazon will pose a legitimate threat to its streaming video dominance, but that day is still a long way off. He claims that the Kindle purveyor is losing between $500 million and $1 billion a year as it builds its empire and secures licensing rights. Of course, Hasting's comments during an interview with Dow Jones are largely speculative; based on the value of deals in which the two have competed directly. Then again, there seemed to be some implicit admission of the costs and struggles associated with competing in the subscription video sphere during its Q3 earnings report. The company lowered its forecast for the next quarter, saying it could lose as much as $490 million.

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Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war originally appeared on Engadget on Fri, 16 Nov 2012 15:49:00 EDT. Please see our terms for use of feeds.

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Netflix Q2 2012 earnings: 530,000 more US subscribers and a return to profitability

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Netflix recently let it drop that its users clocked in more than one billion hours of content-viewing in the month of June alone, although the big question for CEO Reed Hastings is how that relates to the company's subscriber base. The results are in from its Q2 2012 earnings report, and it's claiming 27.56 million streaming subscribers worldwide, up from 26 million last quarter. In the US alone that includes 23.94 million customers, after it reported 23.4 million in Q1, while DVD customers dropped by 850k to 9.24 million. While the number of new subscribers wasn't as high as some had hoped, the good news is the company is finally back in the black, with $889 million in revenue providing $6 million in net income. On the flip side, a plan to launch service in an "additional attractive European market" in Q4 is expected to result in temporary losses, but we'll find out more about those plans later in Q3.

One other issue that has been resolved is the search for a new Chief Marketing Officer resulting in the hiring of Kelly Bennett, formerly a marketing executive with Warner Bros. This morning Verizon and Redbox began to carefully pull back the cover on their competing offering, and Amazon has also been making significant waves in the space. However in response, Netflix says Amazon and Hulu Plus have yet to gain meaningful traction in relation to its viewing hours, and it expects Redbox Instant to face a "big challenge" to break into the existing top 3. Its current content deal with Epix will lose online exclusivity "shortly" although it will still offer those titles, we'll see if any of the competition joins in. Their biggest competition however, is expected to come from efforts like Comcast's new X1 and Sky's Now TV, while for HBO, the possibility of cooperation is actually raised (again). We'll see if that happens or if there are any more juicy details revealed on the investor call in a few minutes.

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Netflix Q2 2012 earnings: 530,000 more US subscribers and a return to profitability originally appeared on Engadget on Tue, 24 Jul 2012 16:07:00 EDT. Please see our terms for use of feeds.

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DOJ looking into whether Comcast, other TV giants are unfairly (knee)capping Hulu, Netflix

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Comcast bandwidth exceeded

The Department of Justice may have taken Netflix chief Reed Hastings' net neutrality complaints about Comcast as a lot more than just sour grapes. It's reportedly conducting an investigation into whether Comcast, AT&T and other TV providers are anti-competitive in their data restrictions. The Wall Street Journal cites primary concerns that Comcast's Xfinity TV cap exemption might unfairly punish competing services, but also claims that officials are worried the caps themselves steer viewers away from internet video, helping the incumbents cling to legacy TV for just a little while longer. On top of its cap anxiety, the DOJ may be looking into policies requiring traditional TV subscriptions just to watch online. None of the involved parties have commented on or confirmed the investigations, so there's no guarantee of any full-fledged lawsuit. Still, while TV operators insist they're being fair and need to keep data use in check, that might not deter legal action when the DOJ has supposedly questioned Hulu, Netflix and other relative newcomers who feel they're being squeezed. When Sony postpones its IPTV goals after fretting over US data caps, it's hard to imagine that there aren't at least a few raised eyebrows in Washington.

DOJ looking into whether Comcast, other TV giants are unfairly (knee)capping Hulu, Netflix originally appeared on Engadget on Wed, 13 Jun 2012 00:32:00 EDT. Please see our terms for use of feeds.

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Netflix Q1 results: 3 million new streaming subscribers worldwide, record viewing hours

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Netflix Q1 2012 earnings

Netflix has posted its earnings report for Q1 of 2012, and reveals its streaming subscriber count in the US is currently 23.4 million, after reaching 21.67 million back in January. While the company noted a net loss of about $5 million, the letter from CEO Reed Hastings and CFO David Wells claimed it is still on a "rapid return" to profitability after last year's missteps and international expansions. Worldwide it now counts a total of 26 million subscribers to the streaming service, although it lost another million or so subscribers to discs, which currently number 10.09 million. That old disc business is still highly profitable however, adding $146 million to the bottom line. Internationally, Netflix added more customers in its first three months of UK / Ireland availability than it did in the same period for Latin America or Canada, and expects its Canadian service to be profitable a quarter earlier than expected.

Reed Hastings also took the opportunity to toss another barb at Comcast for its bandwidth cap-exempt Xfinity TV Xbox 360 app, claiming it should either raise its caps, make them apply to all services including its own or eliminate them entirely. Another development in Q1 was the loss of streaming titles from Starz but it claims that caused no discernible change in viewing or subscriber hours, while customers continue to lean towards streaming TV episodes over movies. Hit the source links below to paw through the PDF and spreadsheet for yourself, we'll let you know if any interesting tidbits are revealed on the earnings call later today.

Netflix Q1 results: 3 million new streaming subscribers worldwide, record viewing hours originally appeared on Engadget on Mon, 23 Apr 2012 16:06:00 EDT. Please see our terms for use of feeds.

Permalink   |  sourceNetflix Q1 '12 letter to shareholders (PDF), Q1 statements (XLS)  | Email this | Comments

Reed Hastings takes Comcast to task for skirting net neutrality

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Reed Hastings takes comcast to task

Netflix CEO Reed Hastings let loose a mini rant on Facebook Sunday, setting his sites squarely on Comcast and its data accounting practices. Highlighting one of the arguments for net neutrality, Hastings pointed out that viewing streaming videos using the Comcast Xfinity app on his Xbox doesn't count against his monthly cap, but other services do. "If I watch last night's SNL episode on my Xbox through the Hulu app, it eats up about one gigabyte of my cap, but if I watch that same episode through the Xfinity Xbox app, it doesn't use up my cap at all." It's slightly odd that different rules would apply to the same device using the same connection to stream the same content from different sources -- and exactly the sort of preferential and self-promoting behavior that net neutrality advocates are afraid will become the norm in an unregulated market. Of course, Hastings is also irate because his own company would love the same preferential treatment, but hasn't been able to close any deals. For the full rant hit up the source link.

Reed Hastings takes Comcast to task for skirting net neutrality originally appeared on Engadget on Mon, 16 Apr 2012 14:22:00 EDT. Please see our terms for use of feeds.

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