Netflix stock has taken a dive since the company announced a net loss for the first quarter on Monday, and the Internet has been rife with predictions of the company’s demise ever since. There’s plenty of reasons for handwringing – the competitive streaming video market, the rising cost of content, and then there’s the notorious fumble of last summer, when Netflix raised subscription prices and tried to create a separate site for DVD rentals.
But for all the company’s missteps, they got one thing very right when they signed on to produce a fourth season of Arrested Development, the cult TV series tragically cancelled by FOX in 2006. Filming begins this summer, and the new season will premiere sometime in 2013. In a new twist on programming, all 10 episodes will be made available on the same day, making for some epic viewing parties.
I’m planning for that day the way some people plan for their weddings. Netflix better not screw this up by going under.
CEO Reed Hastings has responded to investor unease by pointing to subscriber growth, and an expansion into international markets. Netflix added three million new subscribers in Q1, and predicts it will have a total of seven million new subscribers by years end. And Netflix is still bringing in plenty of cabbage. From the Los Angeles Times:
The Los Gatos, California., video subscription company reported a net loss of $5 million on revenue of $870 million in the first three months of 2012, compared with a profit of $68 million on $789 million in revenue during the same period last year.
Netflix’s losses were caused by its rapidly expanding international operation, which sucked $103 million out of the company’s bottom line.
That sounds… kind of reassuring. Please investors, stop selling your Netflix stock. For the good of television.