SAN FRANCISCO – Netflix’s venture into original programming production seems to be paying off as the company reported adding 2.03 million new U.S. subscribers to its internet video service during the first quarter of 2013.
That brought the company’s total domestic subscriber base to 29.17 million paid members, up from 25.47 million in the previous quarter. International customers increased by almost 17% from the fourth quarter of 2012 to 7.14 million.
Netflix reported global first quarter revenue of $1.02 billion, an increase from $945 million in the last quarter of 2012, and a 17.7% increase compared to the same quarter last year.
The company credits much of its subscriber growth to the popularity of its new original programming, such as the series House of Cards, which premiered all 13 episodes on Netflix network Feb. 1.
“The global viewing and high level of engagement with the show increased our confidence in our ability to pick shows Netflix members will embrace and to pick partners skilled at delivering a great series,” the company said in its Q1 2013 letter to investors. “The high level of viewer satisfaction implies we are able to target the right audience without the benefit of existing broadcast or cable viewing data and the strong viewing across all our markets gives us faith in our ability to create global content brands in a cost-effective, efficient way.”
Netflix launched another new series called Hemlock Grove on Apr. 19. It will also premiere the much-anticipated fourth season of the comedy Arrested Development on May 26, with other new series scheduled for release later this year.
The company’s investors have taken notice of Netflix’s subscriber growth and improved profit margins. Netflix stock soared yesterday $42.48, or 24%, to $216.85 after announcing its Q1 results.
The vast majority of Netflix account customers are single users with a two-simultaneous stream limit. The company said it is looking to also cater to larger family households in the U.S. with the addition of a new four-stream plan for $11.99, despite the fact that Netflix expects fewer than 1% of its members will opt for the four-stream package.
