Netflix Tops $1B in Q1, Has 34 Million Paying Subscribers

Netflix garnered more than $1 billion in the first quarter of 2013, according to recent earnings reports, mainly from subscription revenue from its 34

Netflix garnered more than $1 billion in the first quarter of 2013, according to recent earnings reports, mainly from subscription revenue from its 34 million worldwide subscribers (of those subscribers, nearly 30 million are in the U.S.).However, the company only made $3 million in profit, likely because of the video streaming subscription site’s decision to invest heavily in international growth and expansion in 2012.The company also took the time during its quarterly earnings report to announce the launch of a new subscription plan: a $12/month family plan. Under this plan, subscribers can stream videos on up to four devices simultaneously — under the current plan, subscribers pay $8/month but can only stream on two devices at the same time.However, the new plan does not seem to be an integral part of the company’s growth plan, with paidContent reporting that Netflix expects only 1% of subscribers to take it. Instead, the company plans on focusing on content curation and selection, as evidenced by their heavy marketing and promotion of the Netflix-exclusive series House of Cards.The company is also looking to increase its word-of-mouth (i.e., acquistion) and retention marketing by introducing personal profiles, which makes it easier for family members to share recommendations.

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