Netflix Posts Q1 2010 Financial Report [Netflix Reports Having Almost 14 Million Subscribers & More Than Half Of Those Stream Content]

Tweet

It is the time of year when all of the Q1 2010 financial reports begin coming in, and the latest is coming from Netflix. And in addition to showing an increase in things like paying subscribers, these results also show pretty clearly that the transition from a DVD company to a streaming company is well under way.

To begin with, Netflix has reported having nearly 14 million subscribers, or more specifically 13,967,000. That is also a fairly impressive 35% growth from the previous year. Additionally, of those total subscribers, 98% or 13,622,000 are paying which means there are 2% or 345,000 as free subscribers still on trial plans.

A few other interesting numbers include;

• Revenue of $493.7 million, which is a 25% increase over the previous year.
• Gross margin of 37.8%, which is compared to 34.2% from the previous year.
• A churn rate of 3.8%, which was down from 4.2% the previous year.
• Free cash flow of $35.8 million, which is compare to $15.1 million from the previous year.

Some of those numbers mentioned that Netflix was doing well in terms of new subscribers, and breaking that down a little — the report stated that it cost $21.54 on average for a new subscriber acquisition. That number was also down from $25.79 from the same quarter in the previous year.

But getting back to the part that I find most interesting — the streaming. And yes, I just find it interesting because I stream quite a bit from a variety of devices including a Roku set-top box, a Mac, a PC and most recently my Nintendo Wii. Anyway, it was reported that 55% of subscribers stream either television episodes or movies. Of course, Netflix seems to define stream as those having watched at least 15 minutes. To me that sounds like customers that have tried streaming, not necessarily those that watch streaming. That said, that number was up from 36% during the same quarter in the previous year.

Tweet

You may also like:

Netflix Announces Content Agreement With Lionsgate UK...

Netflix Xbox 360 Experience Updated to Support Kinect...