Netflix Ups Q4 Profit 36%, Adds More Than 1 Million Subs27 Jan, 2010 By: Erik Gruenwedel
Another quarter and another stellar result for online DVD rental pioneer Netflix.
The Los Gatos, Calif.-based service Jan. 27 reported fourth-quarter (ended Dec. 31) net income of $30.9 million, up 36% from net income of $22.7 million during the prior-year period.
Netflix ended the quarter with nearly 12.3 million subscribers, which represented a 31% increase from a base of nearly 9.4 million subs a year ago, and a 10% sequential growth from the end of the third quarter.
Citing the continued popularity of streaming, Netflix said it added nearly 1.2 million net subscribers in the quarter compared to 718,000 net subs the previous year. As previously mentioned, the percentage of subs who watched at least 15 minutes of streamed content in the quarter was 48%, compared to 28% the previous year, and 41% in the third quarter.
Subscriber acquisition costs dropped 5.4% to $25.23 per gross subscriber from $26.67 per gross sub the previous year. Churn, or attrition rate of subscribers fell to 3.9% compared to 4.2% the previous year.
Revenue for the quarter increased 24% to $444.5 million, compared to $359.6 million the previous year, and a 5% increase from revenue of $423.1 million in the third quarter.