Cool.
Netflix swung to a profit and revenue nearly doubled as the DVD rental company continued to boost its subscriber base.Netflix has enjoyed rapid subscriber growth as customers migrate toward its mail-order DVD rental model. In February, the company announced it was testing a $5.99-a-month subscription plan as it works to further boost subscriptions, reduce cancellations and increase profitability.
Netflix said it added 687,000 subscribers in the first quarter, bringing its total customer count to 4.87 million.
Marketing costs fell slightly, though the company still spent an average of $38.47 for every new subscriber, compared with $38.68 in the year earlier quarter. Churn, or the rate at which customers leave the service, fell to 4.1% from 5% last year. Churn includes free subscribers as well as paying subscribers who elect not to renew their monthly subscription service during the quarter.
Netflix Swings to Profit
On a related note, the other day, while, umm, daydreaming, I doodled and noodled my monthly costs for Netflix, per movie watched/returned. Over the last 6 months, averaged more than 12 movies returned per month, or about $1.61 per film. If you like to watch movies, and own a DVD player, Netflix is damn good deal. Plus Netflix has a much better selection of films than most local retailers. The quality of film-watching is much, much better.
Tags: Netflix
I've been meaning to pen a similar entry complimenting Netflix. I've seen hundreds of movies that no convenient local outlet has on the shelves, and have had only a few bad discs or lost-in-the-mail problems in more than two years.
A good deal, indeed.