Netflix saw a rise in domestic operating margins to 16 percent, from 14.9 percent in the fourth quarter, largely due to an increase in streaming-only subscribers and price increases on hybrid subscriptions. Margins should fall back to around 14 percent as streaming and marketing costs continue to rise (offset by declines in DVD shipping).
Monday, April 25, 2011
Netflix Earnings Up 88 Percent, Adds 3.3 Million U.S. Subscribers
Netflix added 3.3 million U.S. subscribers in the first quarter of 2011, plus another 290,000 interantionally, to end at 23.6 million, which is slightly below the 3.7 million analayts were hoping for but still double the growth from a year ago.
Netflix saw a rise in domestic operating margins to 16 percent, from 14.9 percent in the fourth quarter, largely due to an increase in streaming-only subscribers and price increases on hybrid subscriptions. Margins should fall back to around 14 percent as streaming and marketing costs continue to rise (offset by declines in DVD shipping).
Netflix saw a rise in domestic operating margins to 16 percent, from 14.9 percent in the fourth quarter, largely due to an increase in streaming-only subscribers and price increases on hybrid subscriptions. Margins should fall back to around 14 percent as streaming and marketing costs continue to rise (offset by declines in DVD shipping).
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Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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