Netflix Q1 Results Indicate Rising Worldwide Subscribers

April 25th, 2012 at 1:11 pm
 


It seems that Netflix is slowly rising back from the hole that it dug itself into. While rising back after a series of missteps prove to be quite slow for the company, but it is coming back just the same. Proof of this slow climb back up might be seen from its latest Q1 2012 results.

Netflix Q1 results still show that it suffered a net loss of $5 million so far, but its other numbers are showing some promise that it will be returning back to profitability in the coming months. For one, it has shown quite a steady increase of subscribers for its recently opened markets in the UK and in Ireland. Locally, Netflix has added around 3 million more new streaming subscribers in the US which currently stands at 23.4 million. Worldwide, Netflix now has an additional 26 million viewers subscribed to its streaming service.

While Netflix’s recent downturn can be attributed to its plans on separating its streaming service from its physical disc business, signs are showing that it might just benefit the company over time. While it has seen a loss of around a million streaming subscribers to their disc customers, which number around 10 million today, this still shows that the latter can still provide quite a considerable contribution to the company’s bottom line. Their disc business was able to add $146 million in terms of revenue for Q1 2012. With its expansion markets showing some promise, things are finally looking a bit better for Netflix thatn the situation it was in last year.

With everything that Netflix had to go through when it started losing subscribers last year, it’s good that they have continued to forge on instead of collapsing. While the company may still have a lot to do in order to become profitable again, it may now be considered that it has finally weathered the storm that it had to go through last year. And this time, it’s going nowhere else but up.

 

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