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Netflix Confirms Subscriber Growth

22 Oct, 2007 By: Chris Tribbey

Netflix saw its subscriber base increase to more than 7 million at the end of the third quarter, a jump of 24% year-over-year, contributing to net earnings of $15.7 million in the past four months, the company reported Oct. 22.

“In the third quarter, we remained focused on the fundamentals: improving our service quality and value for our subscribers,” said Reed Hastings, Netflix co-founder and CEO. “Our results today exceeded our guidance for all of our key metrics — subscriber growth, revenue and net income — demonstrating the advantages of our product and service quality, our strong brand, and our high levels of consumer satisfaction,"

He added: “Going forward we will remain focused on making our core service even better and growing our online DVD rental business.”

For the third quarter of 2006, Netflix reported net earnings of $12.8 million. Revenue for the third quarter of 2007 was $294 million, a 15% growth over last year. Netflix saw its subscriber base grow from 5.6 million this time last year, and from 6.7 million in the second quarter. By the end of the year, the company is hoping to have as many as 7.5 million subscribers.

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