Remember the other day when the hot rumor was that Redbox would be taking on Netflix with a streaming service? Well, it looks like they're going to have more of a deficit to make up than we thought. Netflix has just announced that their overall subscriber count has jumped 42% since last year. The numbers, while in line with Netflix's predictions, and pretty substantial in our estimation, were not up to analyst expectations, and Netflix stock is trading down about 10%.
Another interesting tidbit from Netflix's quarterly statement is that 61% of their customers streamed at least one TV show or movie during the quarter. Clearly, people have embraced the streaming service in a big way. Raw revenue was up only 27% over last year, indicating that many customers were opting for cheaper plans, that still include the streaming service. Netflix CEO Reed Hastings even called the demand for Netflix Watch Instantly "astounding".
Are you a new customer to Netflix? Let us know how you use the service. Is it just the occasional disc and lots of streaming, or do you prefer to get the physical media as much as possible?
Google just came clean with their Q2 revenue numbers, and they look just about as good as everyone expected. Google brought in $6.82 billion in the second quarter. This is a 24% increase over last year at this time, but only a 1% increase over last quarter.
The vast majority of the mountain of cash came in from Google-owned sites. In all that chunk was $4.5 billion, or 66% of the total. AdSense programs brought in an additional $2.06 billion. Google is clearly not hurting for money right now, though it is interesting that the quarter to quarter growth this year has been minimal.
While revenue did beat expectations, actual profit was lower due to the cost per click on Google ads increasing only 4%. Google's stock price has dipped 18.5% in the last few months, and took another 4% hit in after-hours trading.
Profits are always something to celebrate, especially if the profit is the first one in three years. AMD is definitely in the mood to celebrate. But it’s what underlies AMD’s profit that gives others pause about this achievement--the profit only exists because of AMD’s arch-rival Intel. Since Intel’s involuntary largess is likely a one-shot deal, AMD might want to party hard, because the its next quarterly report may just return to the red AMD has become so accustomed to.
Still, there’s a bright side for AMD. Overall, revenues are up 42 percent, due to an upswing in the computer market, and unit sales of its microprocessors and graphics chips rose. For the full year, AMD reported a net income of $304 million on revenues of $5.4 billion, a nice contrast to 2008, which saw a net loss of $3.1 billion on revenues of $5.8 billion.