Netflix Q1 2011: 3.3 million new subs - $706 million in revenue - High-Def Digest Forums
Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 04-25-2011, 04:07 PM
Banned
Thread Starter
 
Join Date: Nov 2010
Posts: 4,634
Default Netflix Q1 2011: 3.3 million new subs - $706 million in revenue

More info come on metrics like streaming usage, etc:
Reply With Quote
  #2  
Old 04-25-2011, 04:08 PM
Banned
 
Join Date: Dec 2007
Posts: 17,293
Default

That kills Blu-ray Q1. Wowzers. Streaming continues to choke out OD.
Reply With Quote
  #3  
Old 04-25-2011, 04:08 PM
Banned
Thread Starter
 
Join Date: Nov 2010
Posts: 4,634
Default

I actually should point it is 3.3 million new domestic subs and 290,000 new international (Canada) subs.
Reply With Quote
  #4  
Old 04-25-2011, 04:12 PM
Malanthius's Avatar
Senior Member
 
Join Date: Nov 2007
Posts: 6,577
Default

Now we know what those Bluray players are being used for. To stream Netflix! Incredible. Where the link?
Reply With Quote
  #5  
Old 04-25-2011, 04:17 PM
Banned
Thread Starter
 
Join Date: Nov 2010
Posts: 4,634
Default

Looks like half of those new subscribers were streaming only:

Quote:
During the quarter, new subscribers embraced the pure streaming and hybrid plans in roughly equal numbers
Despite their spending on streaming content, they could not spend fast enough to hit their 14% margin goal and ended at 16%:

Quote:
In January, we spoke of redirecting the savings generated from a flattening DVD shipment trend into additional streaming content and marketing. We took marketing up as much as was efficient in Q1. But as we anticipated in January, the lead time required to complete increasingly large and complex content deals meant we weren’t able to spend the entirety of these funds. That, coupled with stronger-than-expected subscriber growth, and hence additional revenue and profit, meant our domestic operating margin in Q1 increased above our 14% target margin to 16% (see graph below).
DVD shipments declining YoY:

Quote:
Going forward in Q2 and beyond, we expect DVD shipments to decline slightly Y/Y, spending on streaming content to increase substantially, and spending on marketing to decline from Q1, bringing our domestic operating margin back to our desired goal of around 14%.
Discussion on streaming costs:

Quote:
While the size of these deals and their impact on our P&L is often speculated about in the press, spending typically takes place over multiple years and the amortized cost of these deals is taken into consideration in our 14% target operating margin model.
Reply With Quote
  #6  
Old 04-25-2011, 04:19 PM
mikemorel's Avatar
Senior Member
 
Join Date: Dec 2006
Posts: 3,297
Default

Quote:
Originally Posted by Malanthius View Post
Now we know what those Bluray players are being used for. To stream Netflix! Incredible. Where the link?
http://ir.netflix.com/

http://files.shareholder.com/downloa...areholders.pdf
Reply With Quote
  #7  
Old 04-25-2011, 04:19 PM
Banned
Thread Starter
 
Join Date: Nov 2010
Posts: 4,634
Default

Link for those who want to review:

http://ir.netflix.com/common/downloa...areholders.pdf
Reply With Quote
  #8  
Old 04-25-2011, 04:23 PM
Senior Member
 
Join Date: Dec 2007
Posts: 178
Default

How much of the revenue will be counted towards DVD and BD rental figures?
Reply With Quote
  #9  
Old 04-25-2011, 04:23 PM
Banned
Thread Starter
 
Join Date: Nov 2010
Posts: 4,634
Default

Just looking at their domestic business projections for Q2:

Domestic Q2 2011:
Subscribers 24.0m to 24.8m
Revenue $762m to $778m
Operating Income $100m to $116m


That coupled with their domestic Q1 revenue of 706 million puts them at just under $3 billion pace for 2011, assuming zero growth beyond Q2. With moderate growth, they will be comfortably above $3 billion.

Even if Home Video as a whole stays flat (not likely), that would still give Netflix 16% of the entire Home Video market (rental and sell-through combined).
Reply With Quote
  #10  
Old 04-25-2011, 04:25 PM
Banned
Thread Starter
 
Join Date: Nov 2010
Posts: 4,634
Default

Quote:
Originally Posted by juankerr View Post
How much of the revenue will be counted towards DVD and BD rental figures?
Probably all of it by the DEG.
Reply With Quote
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
EEDAR console sales/revenue report released. PS3 > 360; Digital revenue = 25% Indy_aka_Rex Gaming Smackdown 54 04-14-2016 09:14 PM
Netflix Q2 Earnings Data - 75% of new subs streaming only PSound High Definition Smackdown 57 07-27-2011 09:58 AM
Hulu Plus expected to have over 1 million paying subs in 2011 -(1Q 2011 rev up +90%) Kosty High Definition Smackdown 6 04-05-2011 11:46 PM
Will Blu-ray software revenue (2011) be higher than VHS software revenue (2004)? PSound High Definition Smackdown 56 01-17-2011 01:00 AM
In what year will total Blu-ray movie revenue > total DVD movie revenue? Dust High Definition Smackdown 25 01-06-2008 12:50 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off