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Netflix posts expected quarterly profit, notes Viacom deal expiration

updated 05:07 pm EDT, Mon April 22, 2013

Slight increase in Netflix profits next quarter, continued shift away from DVD

Netflix has announced its quarterly earnings report for the first part of 2013. The company reports having added over three million streaming members, bringing the company's total to more than 36 million worldwide. The company continues to see profits in the US offsetting losses elsewhere, with a $131 million profit in the US and a $77 million loss internationally. DVD rentals continue to earn well, with it bringing in $113 million profit for the company in the US. After all expenses, including payback of debt, the company earned five cents per share.

Netflix points out that it is going to "continue to focus on exclusive and curated content." However, it is allowing its "broad Viacom Networks deal" to expire -- making Nickelodeon, BET, and MTV content unavailable on the service. The company notes that it is discussing licensing particular shows with Viacom, but has yet to conclude a deal. Offsetting the loss, the company notes that it has "recently added fresh programming from Disney, Cartoon Network, Hasbro's The Hub and Dreamworks Animation" partially offsetting the loss of the Viacom content if no deal is worked out.

Overall, the company claims that is has "seen improvements in our business over the last year in content, in our product, in optimizing the way we process payments, and in the general recovery of our brand. All of these improvements contribute to higher member satisfaction, which we see in higher year-over-year levels for members' likelihood to recommend our service."

The company is expecting total customers in the range of 29.4 to 30.05 million during the next quarter, a slight increase from its current 29.2 million members. Net income is expected to be in the range of $14 million to $29 million, with a global earnings per share of $0.23 to $0.48.



By Electronista Staff
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