Netflix Touts 30 Million Streaming Subs25 Oct, 2012 By: Erik Gruenwedel
CEO Reed Hastings hails milestone on Facebook while ignoring disc
Netflix Oct. 25 said it has topped 30 million subscribers globally who are using its pioneering subscription video-on-demand streaming service, including 25 million in the United States.
The milestone comes the day after the Los Gatos, Calif.-based rental service reported lower-than-expected domestic sub growth in the third quarter, ended Sept. 30. The shortfall has prompted Netflix shares to decline more than 9% in value since Oct. 19.
Regardless, co-founder and CEO Reed Hastings took to his Facebook page to congratulate Netflix for reaching the 30 million mark.
“Thank you, thank you, thank you,” he wrote. “Thirty million of you are now Netflix streaming members.”
Again, Hastings ignored (publicly) the 8.6 million Netflix subs who rent discs, including a sizable percentage that opts for physical and digital content. While that tally is down 38% from 13.93 million disc subscribers a year ago, physical subs still generate a lion’s share of Netflix profit.
Indeed, the disc business, which Hastings infamously tried to spin off as Qwikster less than two years ago, generated $131 million in contributory profit and 48.2% of Netflix’s margin.