Netflix ended 2013 on a high note after the company revealed subscriber numbers surged by 10% in the last three months of 2013. The news sent Netflix stocks up by 16% at one point following the report.
Netflix added nearly 4 million new subscribers in the last three months of 2013, sending the total number of of subscriber up by 10% to 44 million. The jump in the number of new subscribers helped Netflix post a net profit result of $48 million for the fourth quarter alone, up from only $8 million a year ago.
Of the new subscribers, 2.3 million are located in the US alone, with the International versions of Netflix, now available in 41 countries globally, responsible for the rest. Netflix expects subscriber numbers to grow by an additional 4 million by the end of the current quarter.
In the shareholder report, Netflix also underlined their current original content strategy, promising to produce more content in order to keep new subscriber growth strong. Netflix also commented on the recent Net Neutrality verdict. The company believes ISPs will no implement "draconian" measures that the new ruling allows, and instead, will keep with the status quo and continue working with Netflix. The company still believes government action will be needed in the event "some aggressive ISPs start impeding specific data flows".
Netflix's DVD based business continues to contract. It now has 6.9 million subscribers compared to 8.2 million a year ago.
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