Netflix announced Q1 2012 results, and they added almost 3 million streaming customers (1.74 U.S. & 1.21 international) bringing the total to 26 million global streaming customers. Netflix lost about a million DVD subscribers, but the remaining 10.1 million added $146 million in profit.
Netflix is expecting to add 7 million streaming customers in the U.S. in 2011. Internationally Netflix expects Canada to be modestly profitable in Q2 and beyond, but warn that profitability in Latin America, Ireland and the U.K. might take longer than they originally thought (8 quarters).
Netflix posted a $5 million loss on $870 million in revenue. In Q2 Netflix might return to profitability or show a small loss, despite forecasting an international loss of $98 to $86 million. Netflix has several different models for forecasting full 2012 total results, factoring in the larger customer base, higher churn and seasonality.
The quarterly Netflix letter to investors is available on the Netflix investor webpage at http://ir.netflix.com.
During the Q&A session Netflix CEO Reed Hastings said that they would "aggresively" increase content spending going forward. Lillyhammer, a Netflix original program, performed as well as a hit show like Breaking Bad did on a cost basis. When asked about tiered subscription plans to enable additional content spending, Hastings said that they were focused on growth for the foreseeable future, so they would not offer additional levels.