Netflix Q2 Results: Nearly 30MM US Streaming Subscribers and $1B in Revenue
Netflix inched closer to 30 million domestic streaming subscribers in its fiscal Q2, but the company failed to surpass the milestone, which may leave investors disappointed.
Netflix now has 29.81 million streaming subscribers in the U.S., and added 630,000 new U.S. subscribers to its streaming service in Q2, the company announced Monday. That’s up just slightly from Q2 of 2012, when Netflix added 540,000 new subscribers in the U.S.. And it’s significantly less growth than Netflix saw in its strong Q1, when it added more than 2 million new streaming subscribers.
On the financial side, Netflix saw its revenue grow to $1.069 billion, up from $889 million in Q1 of 2012. Netflix clocked a solid $57 million of income, up significantly from $16 million in Q2 of 2012.
Internationally, Netflix added 610,000 new subscribers, which compares to 560,000 new subscribers in Q2 of 2012. The number of domestic DVD subscribers continues to decline, and is now at 7.51 million, compared to 9.24 million a year ago.
Netflix didn’t provide separate numbers for its streaming and DVD business back in 2011, but the second quarter has traditionally been weak for the company. The company forecasted as much in its previous quarterly guidance, but some investors may still be disappointed by the fact that Netflix’s ambitious original content push didn’t make a bigger dent. Netflix released House of Cards in late January, and followed up with Hemlock Grove in April and a new season of Arrested Development in May.
However, the company also had some challenges in its programming: Netflix ended its deal with Viacom in May, and as a result removed a lot of popular kids content, including shows like Dora and Spongebob, leading to countless complaints from parents and toddlers alike.