Netflix Profits Surge

Filed in archive Video on Demand on October 25, 2006

Recently, I commented how most video on demand (VOD) service offerings still fall short of the Netflix value proposition. Some people did not like that comparison, thinking netflix had already seen its peak.

The company's latest financial results speak otherwise since the number of subscribers to its online DVD rental service rose 58% from a year ago and its third-quarter profit nearly doubled. Netflix says it added 493,000 net new customers in the quarter and will end the year with at least 6.3 million subscribers.

Netflix earned $12.8 million, or 18 cents a share. Revenue for the quarter climbed to $256 million from $172.7 million.