Tuesday, January 27, 2009
Netflix Update - Profits Jump 45% in Fourth Quarter
Wow, as a nice support to my last post about the future of Netflix and online video distribution, Netflix released quarterly results today with profits up 45%. According to the article in the Wall Street Journal, they raised their projected number of subscribers to 11.3 million for the end of the year. A portion of this huge growth in profits comes from Netflix having relaxed their budget for acquiring new customers, but it is also attributed to higher than expected growth in new customers. It seems with the way the economy is heading, more and more consumers are looking for cheaper sources of entertainment and finding it with Netflix's subscription based movie service. With all this momentum building up behind the company, they will have some substantial resources to invest into online video streaming and continue to ink deals with device makers and various studios.