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Netflix Subscriber Numbers Up, but Streaming Still Short on Profits (Q4 2012) | Epicenter | Wired.com - http://www.wired.com/epicent...
“Total domestic subscriptions are now 24.4 million, up from 23.79 million last quarter (and 19.5 million a year ago). But total domestic subscriptions don’t actually offer a terrifically helpful picture of Netflix’s business. It’s a little like if Apple only touted how many total device customers it had, without breaking down sales of iPods, iPhones, iPads or Macs. That 24.4 million includes 21.67 million streaming subscriptions in the US (just slightly up from 21.45 million last quarter) and 11.17 million DVD-by-mail subscriptions — which is quite sharply down from 13.93 million last quarter. Still, those DVD-by-mail subscriptions contributed $194 million of profit on only $370 million in revenue. Streaming, meanwhile, brings in $476 million in revenue, but only nets $52 million for Netflix’s bottom line.” - × × ×