Netflix released Q3 2012 results and ended Q3 with more than 29 million subscribers and $905 million in revenue. Highlights from the financials:
Netflix ended Q3 with 25.1 million domestic subscribers (23.8 paid), and 4.31 internatioal subscribers (3.69 paid). DVD subscribers declined to 8.61 million (8.47 paid).
Global revenue was $905 million, with domestic streaming bringing in $556 million, international at $78 million, and VD at $271 million. Netflix ended the quarter with a modest $8 million in profit (13 cents per share).
For Q4 Netflix is forecasting 26.4 to 27.1 million domestic and 5.2 to 5.9 million internations streaming customers (paid and trial subs), and possible a loss of $13 million to a possible profit of $2 million in income. DVD subs will continue to decline to 7.85 to 8.15 million subs, but will contribute $117 to $129 million in profit, offsetting international losses of $119 to 107 million.
In a letter to shareholders Netflix cites two metrics to gauge increased customer satisfaction: "We increased our per member viewing in Q3 by more than 30% (year over year) to record highs by improving our content and member experience; and our voluntary churn is generally the lowest it has ever been.1 In contrast, involuntary churn has been increasing as we grow more mainstream and attract more lower-income households."
TV is huge for Netflix, and they note that 6 of the top 10 TV shows are exclusive to Netflix, and the rate is slightly higher for the top 50.
Netflix published a chart to show that streaming obligations have stabilized:
Netflix is competing in the recently launched Nordic countries directly with HBO, and it'll be a battle everyone will be watching closely, as Hastings believes that HBO will eventually unbundle HBO GO in the USA and compete directly with Netflix.
Interesting stats from Q3: Netflix streamed 3 billion hours of movies and TV shows and there are now more than 800 Netflix-ready devices.