Netflix profits double to $71m as subscriptions rise

http://www.bbc.co.uk/news/business-28409604

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Online video service Netflix reported profits of $71m (£42m) in the second quarter, more than double compared with the same period a year ago.

The company said revenue from its streaming content service rose nearly 50% to $1.2bn, compared to $837m a year earlier.

Netflix said it added 1.69 million users during the period from March to June.

The streaming video firm now has 50 million users in over 40 countries.

Netflix has sought to upend the television industry by commissioning original content for its streaming-video platform and taking on established brands like HBO.

Viewers have reacted positively to shows like House of Cards and Orange is the New Black.

Last year, the company's original programming was nominated for 14 Emmy TV awards, winning three, and this year its programming garnered a record 31 nominations.

However, the company has recently suffered some setbacks in the US, as it has battled with internet service providers (ISPs) such as Verizon over who must pay for the increasing pressure that streaming video puts on download speeds.

Netflix chief executive Reed Hastings has been a vocal opponent of Comcast's proposed $45bn purchase of Time Warner Cable, fearing it would lead to too much consolidation in the industry.

In a letter to shareholders announcing the earnings, Mr Hastings wrote, "Our focus on strong net neutrality, including interconnection, is about preventing large ISPs from holding our joint customers hostage with poor performance to extract payments from us."

Shares in Netflix - which are already up 22% for the year - rose nearly 2% in trading after US stock markets had closed.