Netflix have just announced their 2nd Quarter results to their investors and stated that now have around 104 million subscribers worldwide (just under half are in the US). They are, however, still spending more than they earn with a 93% renewal rate for their TV series and increasing costs of production. Investors are clearly happy with this though as their share prices went up 10% to a whopping $178.30.
One obvious suggestion on how to improve their cash flow would be a price increase but don’t worry, CEO Reed Hastings has made it clear there are no price increases in the near future. Netflix is still great value for money where a subscription costs $8-$12 in the US vs HBO’s $15 and £6-£9 vs £21* for NowTV in the UK.
Source: Seattle Times
*NowTV full package made up of: £3 Kids, £8 Entertainment/TV, £10 Movies