Andre Yoskowitz
24 Jul 2012 22:08
Netflix reported their second quarter earnings this afternoon and investors were not pleased.
The video streaming company posted disappointing subscriber growth, which is usually strong during the first half of the year.
For the last quarter, the company added just 1.1 million streaming subscribers, adding up to a total of 27.6 million.
Last year, the company added 2 million subscribers during the same period.
The company charges $7.99 per month for unlimited streaming of the company's "Watch Instantly" catalog. The catalog has over 25,000 movies and TV episodes. The movie categories are lacking, but the TV catalog is quite substantial.
CEO Reed Hastings added that the company will likely struggle to add subscribers in the third quarter, as the Olympics will fill the "entertainment needs" of most.
Despite all the headwinds, including losing 900,000 DVD-by-mail subscribers, the company still made a profit of $6.2 million.