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Netflix’s Momentum Continues With 2.33 Million New U.S. Customers in Q4 (The Verge)
Netflix revealed its fourth quarter earnings Wednesday, capping off a banner year that saw the streaming service surpass HBO in subscriber count and earn critical acclaim for its original programming. In Q4, the company handily beat Wall Street expectations with revenue of $1.18 billion and earnings per share of $0.79. During the same period last year (before viewers had streamed a single episode of House of Cards), Netflix earned 13 cents per share on revenue of $945 million. Bloomberg Businessweek Netflix said Wednesday that it expects to sign up another 2.25 million subscribers in the first quarter, with “years of member growth ahead of us,” according to a company letter to shareholders. Netflix shares soared nearly 18 percent in trading after the market’s close, following a 1.5 percent gain to $333.73 in the regular session. NYT The strong growth came even though the service did not add a prominent, exclusive program like the drama House of Cards. One new animated series, TurboFAST, was introduced and the quarter contained the second season of the service’s initial drama series, Lilyhammer. But Netflix did maintain much of its media momentum by being prominently mentioned in award nominations and end-of-the-year best lists. The Guardian Netflix has been experimenting with different subscriber options including different streaming offerings and a lower-priced $6.99 plan for new U.S. customers to get a single stream of standard definition video. On a call with analysts Reed Hastings, chief executive officer, said eventually he would like to have “three simple options to fit everyone’s taste”. He said the company had no plans to run advertising, as does rival Hulu.