Netflix Canada again reports profit in Q3

Netflix Inc.’s revenues continued to outpace content acquisition costs in Canada during the third quarter of 2012, the company said in a financial statement released Tuesday. “We expanded our profitability in Canada in Q3 as revenue grew more quickly than content expense, and we intend to steadily expand our contribution margin over time, even as we continue to add more content,” Netflix said in a letter to shareholders. The company, based in Los Gatos, Calif., launched in Canada two years ago. In an emailed statement to The Wire Report, Joris Evers, director of corporate communications at Netflix, said the company does not “break out” subscription numbers for each region. “I would want to emphasize though that we’re pleased with our performance in Canada and see Canada as a model for our other regions,” Evers said. The company said in July that its service had “grown to over 10% of Canadian households" and that it "achieved enough scale to begin to generate contribution profits.” Netflix reported a million Canadian members in August 2011. Netflix said Wednesday it expects international contribution losses to increase to about $113 million in the fourth quarter as a result of its October launch in the Nordic countries. Netflix added it is “hopeful” the Nordic countries will have a “Canada-like success.” The service is also available in the United States, Canada, the U.K. and Latin America. The company said it would bring the new and fourth season of comedy Arrested Development to Netflix members in the spring. “Like our other originals, this will only be available on Netflix within our markets,” the letter said. Evers said there was “no news” on whether Canadian users will have access to the Arrested Development release, which must be negotiated with the content rights owner to cover each jurisdiction. Netflix said Wednesday it added 1.16 million U.S. streaming subscribers and 700,000 international users in the third quarter of 2012. The company said revenues reached $905 million US in the third quarter, up from $889 million US in the previous quarter. Netflix’s profits reached $7.7 million for the three-month period ended Sept. 30, 2012, with earnings per share of $0.13. The company said its U.S. subscribers reached 25.1 million at the end of the third quarter. news@thewirereport.ca

Netflix Canada again reports profit in Q3

Broadcast | October 24, 2012

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Netflix Canada again reports profit in Q3

Broadcast | October 24, 2012

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

CBC’s Tait says IP ownership has to remain front and centre of CanCon rules; Amazon disagrees

Streamers should be obliged to sell cable integration apps to small BDUs: CCSA

Netflix and MPA-Canada want C-11 to be flexible for global undertakings

C-11 will “hang over the system until Supreme Court has spoken” over jurisdiction: Palmer

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us