Posted in: Broadband Video Companies, Making Money & Web Video, News, Video on Demand by Dave Parrack on January 23, 2014

Netflix LogoNetflix has had a big news week, with various stories emerging from and about the streaming video company. This includes revenue and subscriber numbers, plans for new pricing tiers and an expansion into Europe, and a statement on net neutrality.

Netflix Subscriber Numbers

Netflix revealed its fourth quarter earnings, reporting revenues of $1.18 billion (an increase of 24 percent on a year earlier) and profits of $48.4 million or 79 cents per share. Profits in the same period last year were just 13 cents per share.

Netflix also revealed its latest subscriber numbers, adding 2.3 million domestic (U.S.-only) customers in Q4 to hit a total of 33.4 million subscribers. Its international userbase rose by 1.7 million to hit 10.93 million in total.

New Netflix Pricing Tiers, Territories

The company is now looking forward to the year ahead. In the U.S. it’s planning to change its pricing tiers, with CEO Reed Hastings stating, “Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone’s taste,” but details are currently thin on the ground.

Netflix also has plans to continue its expansion into Europe, saying it expects, “later this year to embark on a substantial European expansion.” Unfortunately, details are once again thin on the ground. Netflix currently operates in the UK, Ireland, the Netherlands, and the Nordic countries.

Netflix’ Net Neutrality Statement

Netflix also took the opportunity to address the question of net neutrality in recognition of the recent legal loss suffered by the FTC (Federal Trade Commission).

The company suggests that it’s unlikely ISPs will change its attitude towards Netflix because enacting this “consumer-unfriendly path of discrimination” will “galvanize government action.” The statement concluded, “In the long-term, we think Netflix and consumers are best served by strong network neutrality across all networks, including wireless.

Conclusions

Netflix clearly had a great 2013, but is reluctant to rest on its laurels. Hence the reorganizing of its pricing tiers and a commitment to expand further into Europe. The one worry appears to be the loss of net neutrality, which could seriously impinge on Netflix’ ability to deliver content to its customers.

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