Some good news for Netflix, with subscriber gains in the third quarter, and more coming soon. And good news for the DVD industry, with both revenue and subscriber losses in the third quarter. What’s not to love?
Netflix has now reached 1.5 million subscribers, up 16% from the previous quarter, and its streaming video service now has more than 1.5 million customers worldwide.
It’s still a tiny amount, but it is a big deal for Netflix. It’s far from the only company trying to launch its own streaming video service, as other streaming companies such as YouTube, Amazon, Hulu, etc. have all launched their own streaming services, but it is the first streaming service that has reached the million subscribers mark.
So, what’s the story?
The reason Netflix is growing faster than any other streaming service is because it doesn’t have to compete against the likes of YouTube and Amazon. It has to compete against other DVD players and rental services or the likes of Blockbuster, which are still dominating the rental business in the United States.
What’s more, Netflix has been adding feature films that no other streaming or DVD rental service has – and it has been expanding on its service to all parts of the world, not just the US.
It is, therefore, only logical that the streaming service will continue to grow and will soon overtake the rental business, as this service is a big threat to the DVD rental industry.
Netflix also increased its original catalog, and as you can see below, there are a lot of great titles added recently to its library, including many from Academy and Golden Globe winning directors.
Netflix now has almost 2.5 million subscribers, up from more than 1.5 million in 2012. It has 1.8 million customers in the United States, and more than 5 million in Canada.
Meanwhile, in the United States, Netflix’s share in total DVD rentals was down 7% in Q3, with subscribers spending about $1.2 billion on rentals. Netflix’s revenue for Q3 was down from $1.5 billion in Q2, but $2.5 billion including its higher-than-expected subscription fees and advertising revenue.
Netflix’s Q4 forecasts
In conclusion, Netflix has now surpassed the