NEWS

Netflix passed 50 million members in 2nd quarter

07/21/2014 04:44 EDT | Updated 09/20/2014 05:59 EDT
Netflix announced it has more than 50 million members in 40 countries as it released second-quarter earnings today.

Its operating income was $130 million US or $1.13 a share, up from $47 million or 59 cents a share a year ago.

Investors were particularly interested in subscriber numbers this quarter, because of Netflix’s announcement that it would raise prices for new subscribers. 

The fact that existing subscribers can lock in their lower prices was expected to reduce user cancellations as existing subscribers won’t pay more for two years. 

Passing the 50-million benchmark is considered a mark of the runaway success of the streaming service.

Netflix shares are up 65 per cent in the past year and jumped 1.7 per cent in post-market trading to $452 after the results were released.

The U.S. member base was more than 36 million and revenue was growing faster than spending on new content.

The second season of Orange is the New Black, one of its original series, became the most-watched series in every market where Netflix operates.

To launch in France, Germany

Netflix also announced it would launch in September in Germany, France, Austria, Switzerland, Belgium and Luxembourg.

The video streaming service said it had experienced growth in all its international markets, but expected to continue to lose money as it invests in new areas.

The picture was different in the U.S. where it generated  $227 million US in profit on $838 million in revenue. Netflix total revenue for the second quarter was $1.14 billion, up from $837 million a year ago. 

In another innovation, Netflix will begin to offer physical gift cards in Canada and the U.S., which will enable people to give the streaming service as a gift.

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