LOS GATOS, CA – Netflix has topped 50 million subscribers in more than 40 countries, and has more than doubled its profits in the second quarter despite hiking its fees earlier this year.
For the period ended June 30, 2014, revenues at the online streaming service were $1.34 billion, up from $1.06 billion during the same quarter in 2013, while net income of $71 million shot up from the $29.5 million reported for the same period a year earlier.
The company generated $1.15 billion in total streaming revenue for the quarter, up from $837 million year-over-year, and now has 50.05 million total streaming subscribers, of which 13.8 million are international subscribers. A breakdown of the number of Canadian Netflix subscribers was not specified in the results.
Netflix’s international business posted a loss of $15.3 million in the second quarter, which has improved from its $66 million loss in the year-ago quarter, and said that it anticipates a loss of $42 million from its international business in the third quarter of this year as it launches in Germany, France, Austria, Switzerland, Belgium, and Luxembourg in September.
“This launch into markets with over 60 million broadband households will significantly increase our European presence and raise our current international addressable market to over 180 million broadband households, or 2x the number of current U.S. broadband households”, reads the note to shareholders that included the company’s financial results.
The note, signed by CEO Reed Hastings and CFO David Wells, also paid tribute to its original series and documentaries which generated a total of 13 Emmy nominations this year, adding that season 2 of Orange is the New Black “became the most watched series in every Netflix territory” thanks to its “largest content marketing push to date”.
Netflix added that it’s now streaming content in UHD 4K to subscribers with 4K Smart TVs, including House of Cards season 2 and all seasons of Breaking Bad, and is shooting original series like Marco Polo, Sense8, and Narcos in 4K.
The company also announced plans to introduce physical gift cards in select stores in Canada, the U.S., Mexico, and Germany starting later this year.
“In mature markets, gift cards will extend our brand presence and make it easier to access Netflix”, continues the note. “In newer markets, gift cards help build the brand and provide an easier alternative for consumers to join Netflix in markets with developing online payments.”
