14 DAY TRIAL // Because of modern lifestyle being what it is, many people don't find the time to go to the cinema or even to DVD rental shops to see/acquire the latest motion pictures. Instead, most of these people rely on online renting, which gives them the possibility of either having their favorite DVDs delivered at home, or of seeing movies directly on their computers, after paying a certain fee.
Netflix, the world's largest movie rental service, continues to register increasing revenues, as the second quarter earnings report reveals. The total number of subscribers reached 8.4 million, which means 1.7 million more clients than the company had a year ago. The fact that contributors can keep the rented DVD for as long as they want, with no additional fees, may be one of the reasons behind Neflix's immense popularity. Moreover, the subscribing plans that start from only $4.99 may be another reason for which the company increases the number of clients and revenues year after year.
Speaking of revenues, Netflix's second quarter earnings were of $337.6 million, marking an 11% growth compared with last year. The April-June period was also more auspicious than the first three months of 2008. The company registered a 4% increase compared with the specified semester.
"We are pleased to announce another quarter of strong financial results," said Reed Hastings, Netflix co-founder and chief executive officer. He also admitted that most of the growth could be attributed to the fact that the rental company had some great opportunities of collaborating with important partners.
"We made important progress on our strategy of offering our subscribers the option of streaming video directly to their TVs with the introduction of The Netflix Player by Roku? in May and the announcement earlier this month of our agreement with Microsoft to embed Netflix streaming capability in the Xbox 360 video game and entertainment system." he explained.