updated 09:25 am EDT, Tue July 22, 2014
Company planning mass European expansion in September
Netflix is the latest company to release its quarterly financial results. Touting expansion to 50 million subscribers in the US, the company reports $1.15 billion in revenue from streaming, adding 1.7 million subscribers in a quarter. Profit came in at $212 million, nearly triple that of the second quarter of 2013.
Breaking down results, US streaming members accounted for $838 million of the revenue, with $307 million coming from international subscribers. US streamers drove the profitability of the company, bringing in $227 million, up from $201 million last quarter. International streaming is improving, but still costing the company money -- revenue from international customers climbed to $307 million, but reduced profit by $15 million.
The company still has some DVD-by-mail renters. Subscriptions continue to decline, with this quarter the company holding 6.3 million subscribers -- down 391,000 from last quarter. This is less pronounced a drop than last year, which had a loss of 475,000 customers.
The company is expecting to grow its international losses in the next quarter due to expansion into Germany, France, Austria, Switzerland, Belgium, and Luxembourg. The expansion will grow its potential customer base overseas by 50 percent, to 180 million -- more than twice the current possible US customers. The company claims that after the expansion in Europe, about one-third of current global broadband households will have Netflix available to them as a viewing option.