Netflix Surpasses 20 Million Subscribers

Paul Lilly

In a letter to shareholders on Wednesday, Netflix announced it had another "outstanding" quarter, and it has the numbers to back that claim.

Let's start with the subscriber base. There are now 20.1 million movie and TV buffs forking over greenbacks to Netflix every month, over 3 million of which were added in the fourth quarter. By comparison, Netflix added 1.93 million subscribers in the third quarter of 2010, 1.03 million in the second quarter, and 1.70 million in the first.

Revenue reached $596 million, a 34 percent year-over-year increase, and more than 60 percent higher than the $360 million in revenue in the fourth quarter of 2008.

"To summarize Q4, we would say that our huge subscriber growth, fueled by the excitement of watching instantly, impressed even us," Netflix said. "More subscriber growth enables us to spend more on streaming content, making the Netflix service seven better in 2011."

Where Netflix goes from here is anyone's guess, but it promises to be an interesting journey. Netflix hasn't been shy in saying that it's now primarily a streaming a service, and one of the challenges will be to continue to add new content without jacking prices up.

Shareholder Letter (PDF)

Image Credit: Netflix

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