Netflix posts impressive revenue report

Netflix posts impressive revenue report

Online movie rental company Netflix might be facing enhanced competition from competing services but they continue to perform well.

The company has announced better than expected quarterly results and has said that they expect the subscriber base to grow at a good pace.

Netflix also is able to gain customers away from rivals including Blockbuster. The company’s sales have exploded by more than 513% in the past four years to $277.2 million in the three months ended Dec. 31.

The company added that as many as 654,000 new subscribers joined Netflix during the December quarter. They now have a total subscriber base of more than 6.3 million people.

They are targeting a base of around 8 million to 8.4 million subscribers by the end of 2007. Morningstar analyst Larry Witt spoke about Netflix in a note to customers: “Despite increased competition from Blockbuster and the uncertainty regarding the future of digital downloads, we think Netflix will continue to expand its subscriber base and increase profit margins for the foreseeable future.”

Netflix CEO Reed Hastings added: “Our accomplishments during the year — strong subscriber growth, continued improvement in the customer experience, and increased profitability — together with the recent launch of the first generation of our online video option, leave us better positioned than ever to achieve our long-term objective of being the movie rental leader.”