Netflix Adds 3 Million Streaming Subscribers, Stock Tops $200

Netflix added 3 million subscribers to its streaming video service in the first quarter, bringing the total number to 36 million viewers, the company reported on Monday. Those viewers streamed 4 billion hours of programming during the quarter.

The increase prompted a surge in afterhours trading for the stock, which broke $200 for the first time since 2011. Revenues for the quarter also broke $1 billion in revenues and reported earnings per share of $0.32 — higher than analysts had predicted

In a letter to shareholders, CEO Reed Hastings and CFO David Wells credited the original series House of Cards with giving Netflix some social media buzz. "The global viewing and high level of engagement with the show increased our confidence in our
ability to pick shows Netflix members will embrace and to pick partners skilled at delivering a great series," they wrote. "The high level of viewer satisfaction implies we are able to target the right audience without the benefit of existing broadcast or cable viewing data and the strong viewing across all our markets gives us faith in our ability to create global content brands in a cost-effective, efficient way." Fewer than 8,000 people took advantage of a free trial to watch the show and then cancel, according to the letter. Read more...