In its Q2 2012 earnings report, Netflix reports that its subscriber base for domestic streaming is 23.94 million, up from the 23.41 million it reported for Q1.
As continues to be the trend, numbers are going up for streaming services and down for physical DVD rentals.
This is true for Netflix, which “added more than 530,000 domestic streaming subscribers in the quarter but reported a decline of 850,000 subscribers to its domestic DVD service,” according to CNET.
“While that means the total number of Netflix’s net U.S. subscriptions shrunk by 320,000, the company still managed to increase the number of U.S. subscribers by 420,000,” explains the article. “The difference between subscriptions and subscribers is that ‘unique subscribers’ counts people and not the types of accounts. So, for example, if people dropped their DVD subscription they might have remained as a streaming customer and weren’t counted among the ‘net new subscription additions.'”
Netflix CEO Reed Hastings has suggested that DVD subscriptions would drop. He’s right, of course, but “what’s shocking is that customers aren’t moving over to streaming at the same pace they’re dropping their DVD subscriptions,” notes the article.
According to CNET: “Netflix reported a profit of $6 million, or 11 cents per share, for the second quarter on revenue of $889 million,” marking a 91 percent decrease in profit from last year’s $68 million earnings.
“We have yet to see Hulu Plus or Amazon Prime Instant Video gain meaningful traction relative to our viewing hours, but as we continue to build a domestic profit stream they are likely to increase their efforts to gain viewing share,” says Hastings. “Redbox Instant by Verizon, once they launch, will face a big challenge to break into the top 3 of subscription streaming services.”
In its Q2 2012 earnings report, Netflix reports that its subscriber base for domestic streaming is 23.94 million, up from the 23.41 million it reported for Q1.
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