Netflix Posts Q4 2010 Financial Report

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Netflix has joined the many others as of late and posted their Q4 2010 quarterly report and while they are showing some decent numbers, they have also included some interesting tidbits in terms of streaming versus dvd, which is the most popular plan for new subscribers, whether or not further international expansion is coming this year and more.

With that, lets first begin with those numbers. According to Netflix, this has been “another outstanding quarter.”

• Subscribers – 20.01 million
• Net Subscriber Additions – 3.08 million
• Revenue – $596 million
• Operating Income – $78 million
• Net Income – $47 million
• EPS -0$0.87 per diluted share

Furthermore, the quarter was described as having “huge subscriber growth” but perhaps a little nicer to hear was how Netflix stated that the subscriber growth increase allows them to “spend more on streaming content.” And speaking of subscriber growth, Netflix totaled 7.7 million net subscriber additions for 2010.

Moving onto the streaming information and we learn that “more than a third of new subscribers are signing up for the pure streaming plan.” But that said, the remaining new subscribers primarily sign up for the $9.99 per month plan which includes 1 DVD at a time and unlimited streaming. In other words, while many were looking for a streaming only option, it does not seem like it has fully caught on yet. And speaking personally, while I love the streaming side and primarily use my account for that — I cannot ditch the DVD just yet, not until the streaming content catches up to what is on DVD. Furthermore, Netflix noted that “very few” of the existing subscribers downgraded to the streaming only option. However to counteract that, it seems that the streaming growth is “much faster” than it was for the DVD.

And as far as the further international expansion, Netflix looks to add an additional market in the second half of 2011, provided “Canada continues to perform well.” But for those worried, Netflix did mention that those results coming from Canada “have been excellent.”