Netflix profit more than doubles

[Bob Of Burleson]

Reuters

Netflix Inc said on Monday its quarterly profit more than doubled, boosted by strong growth in U.S. and international subscribers as a price increase for its most popular U.S. video streaming plan did not deter new users.

Netflix added 570,000 U.S. customers in the second fiscal quarter ended June 30, passing 50 million worldwide subscribers for the first time. It added 1.12 million customers in international markets.

The company's shares rose nearly 1 percent at $456.21 in after-hours trading, after the company also said it expected average revenue per user to rise slowly as it wins over more subscribers at the new prices.

The company in May increased the price of its most popular video streaming plan by $1 per month to $9 for new customers in the United States — the company's first price hike in its largest market in three years.

The company suffered a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011.

Netflix executives also said they were contemplating an eventual move into China, the world's most populous country. "It's conspicuously large, and it's conspicuously a growing and very strong economy," David Wells, Netflix's chief financial officer, said on a video-streamed conference call with analysts. "Look for the future in terms of an answer from us in China."

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[PlanoSooner]

redbox instatnt should be blowing them out of the water..... but they dont have a good library