Netflix profit up 45% in Q4, nears 10 million total subscribers

Analysts were already anticipating a killer Q4 for Netflix, and unlike practically every other company on the face of the planet, it delivered. The movie rental firm somehow managed to see net income rise to $22.7 million in the quarter, up from $15.7 million in Q4 2007. Revenue was also up by 19 percent, and subscriber growth was pegged at an amazing 26 percent. All told, the firm ended the quarter with 9.4 million subscribers, decimating its own forecast of ending Q4 with 9.15 million customers. Of course, some (Netflix included) are quick to assert that the recession has actually boosted business, with many consumers opting to stay home and rent versus taking the family out for a pricey night at the cinema. Netflix is now projecting to end 2009 with anywhere between 10.6 million to 11.3 million customers, and given all the hardware deals it keeps landing, we don't see a reason why it won't get there. Way to buck the trend, Netflix -- we needed some bright news today.

[Via AP]

[(Unverified) Posted Jan 26th 2009 6:37PM]

Great company. A dvd was not available locally to me so they shipped it (arrived from CO) today AND it was a 4th, not one of my 3 in regular rotation. I didn't even ask or bat an eye but they took initiative.

[(Unverified) Posted Jan 26th 2009 6:46PM]

I was away for 2 years and came back in September, their service has really gone down hill. One example, of many.

Placed Wall-E (Standard DVD) at the number 2 spot in my queue on November 18th (the day it released). It is up to the number one spot, but has said "Long Wait" (or worse) since day 2. It has been more than 9 weeks and they still can't get me a copy. (I've gone through at least 15 more in my queue during this time)

If it wasn't for their 'Watch Instantly' I'd probably already have dumped them again...I can only image how bad Blu-ray is.

I guess come summer (less time to watch movies), I will discontinue my service. More customers = worse service. (I'm on the 1 at a time plan, so I shouldn't be getting throttled)

[(Unverified) Posted Jan 26th 2009 8:14PM]

Well I think your one of the few, I have no problems with blu ray access, i have 3 at a time unlimited, and love it. Netflix is a great service for an amazing price.

[(Unverified) Posted Jan 26th 2009 8:29PM]

I have had Wall-E (blu-ray) at the top of my queue as well since it came out, and recently it moved from long wait to short wait, but it has still not shipped. Then there are the movies like The Shawshank Redemption, that have been in very long wait since day one, which I don't see coming anytime in the near future. If you have a bunch of long wait movies at the top of your queue though sometimes you'll get lucky, as I got Into the Wild and The Dark Knight the day after they came out. With the way blu-rays look on a 40" 1080p HDTV, I see no reason to go to the theatres.

[(Unverified) Posted Jan 27th 2009 8:53AM]

My guess is the fact that you are on the 1 at a time plan is hurting your chances. I don't believe netflix will hold movies in stock, as soon as they are returned, they are sent to the next customer. The problem is that since you are on the 1 at a time plan, you have less chance of the day you return a movie to be the day that the new release is in stock. While someone with the 3-at-a-time plan might be returning movies ever day or so. Giving them a better chance of having their return match up with the day a new release is returned.

Of course that is simply a guess, I don't know for sure how it works on the netflix end. Its just been my (anecdotal) experience that most of the people that complain about never getting new releases are on the 1 at a time plan.

[(Unverified) Posted Jan 26th 2009 7:23PM]

good news... would be better if there was mention of plans for a netflix app for the PS3. in my dreams i guess...

[(Unverified) Posted Jan 26th 2009 8:22PM]

Just came back after a few years myself. I hope they keep those prices down.

[(Unverified) Posted Jan 26th 2009 8:52PM]

So that's what they're doing with my extra dollar a month. I think next time a company has me over a barrel like that I'm going to buy their stock.

[(Unverified) Posted Jan 26th 2009 9:24PM]

I don't think "decimating" means what you think it does.

[(Unverified) Posted Jan 26th 2009 11:11PM]

I've been a Blockbuster rental program customer for 5 years and just ended my membership. I was tired of showing up on release day morning and finding the new Blu discs already gone. I'm saving $20 going with the basic NF rental *and* I get unlimited streaming of all of those cheesy 80's movies my wife loves. Win-win. I just wish they had a surcharge program so I could watch new releases in HD. I suppose my DirecTV HR-20's would be better for that anyway.

[(Unverified) Posted Jan 27th 2009 1:08AM]

I've gone in to do an in-store swap at BB only to find all the New release spots empty because they haven't received them yet. Once they've got them I don't usually have any problems getting them when I want them.

[(Unverified) Posted Jan 26th 2009 11:36PM]

I know Blu-ray has helped Netfilx gain many new subscribers. At least 4 of my friends have joined Netflix after buying a Blu-ray player.

[(Unverified) Posted Jan 26th 2009 11:42PM]

It would be very interesting to know what percentage of the profit increase was attributable to the streaming side of the business as opposed to discs themselves.

[(Unverified) Posted Jan 28th 2009 3:30AM]

who the f... paying for movies or music ,these day? ok, blurays are fine,it takes to long to download..