Earnings: Netflix In Profits; Revs Jump 47 Percent

Netflix has a Q1 profit on a 47% increase in subscriber revenue…net income was $4.4 million, copmpared to a loss of $8.8 million in the year-ago quarter. Revenue rose 47% to a record $224 million from $152.4 million. Subscriptions rose 61% from a year ago to 4.87 million.
Churn fell to 4.1% from 5% a year earlier, though it rose slightly from the 4% rate of Q4 05. Subscriber-acquisition cost was $38.47 per gross subscriber addition, compared with $38.68 a year ago and $41.17 in Q4.
More details in the earnings release.
From the conference call transcript, by SeekingAlpha: “By the end of this year, we will communicate a clear timeframe for launching the additional option of internet delivery for Netflix subscribers.” On original content acquisition: “We’ve been acquiring some small titles over the past couple of years, but it’s fairly modest today. It has the potential to grow into something interesting as we grow from 5 million subscribers to 20 million, and that’s why we’re investing in the confidence, getting our hands around it at a small scale today, because of its potential value when we have a 20 million subscriber platform.”