Netflix Profit Up, More Subscribers

Netflix Inc, which is the largest mail-order movie-rental system in the United States, has experienced significant 48 percent rise in profits in the third quarter off of an increased number of subscriptions. Net income has increased to $30.1 million, or 52 cents per share, from $20.4 million, or 33 cents per share, a year earlier, according to a statement released today by the company.

Netflix’s results managed to surpass analyst expectations for its profit, with the average analyst estimate coming in at 47 cents across twenty-two predictions. While much of Netflix’s competition has been forced to shrink operations due to weak demand, Netflix has seen its subscriber base grow from 8.67 million last year to 11.1 million this year as the company’s offerings continue to broaden.

However, Churn, which is an index of the company’s subscriber cancellation, grew 4.4 percent from 4.2 percent a year ago, which could signal competition brewing for Netflix. In most cases, customers that cancelled their subscriptions to Netflix instead opted to rent movies from Coinstar’s Redobx vending machines, but for the most part, Netflix has expressed confidence in its performance.

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