Light Reading

Netflix Surges on Profit, Subscriber Gains

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner

Welcome to today's broadband and cable news roundup.

  • Netflix Inc. ended a turbulent 2012 on a high note. Shares in the streaming video specialist soared more than 30 percent in after-hours trading Wednesday after the company issued fourth-quarter results that included a surprise profit and the addition of more than 2 million U.S. subscribers. Wall Street analysts were expecting a loss of 12 cents per share, but Netflix turned in a profit of 13 cents ($8 million) on revenues of $945.2 million, up 8 percent year-on-year and better than the $934.5 million that analysts were expecting. Netflix lost 380,000 DVD subscriptions, narrowed from a loss of 2.76 million a year earlier. The addition of 2.05 million streaming subs pushed Netflix's U.S. totals to 27.15 million. The surge comes ahead of the Feb. 1 premiere of Netflix's anticipated, new original series, House of Cards. Netflix predicts it will add 1.7 million customers in the first quarter of 2013. (See Icahn: Netflix Sale Has Crossed Our Minds.)

  • But how much higher can Netflix's streaming subscription totals go? Sanford C. Bernstein & Co. Inc. analyst Carlos Kirjner said in a research note that he's "highly skeptical that Netflix can get anywhere close" to the range of 50 million to 80 million U.S. subscribers this decade, even if company management views that as a realistic goal. He thinks cable operators will be forced to jack up broadband prices, or perhaps charge a fee directly to Netflix, if Netflix usage continues to rise. At this point, though, Kirjner sees Netflix's ceiling at about 38 million U.S. streaming subs.
  • CBS Corp. claims that Dish Network Corp. concealed material facts about its new ad-skipping technology when the companies were negotiating a new retransmission pact in 2011, reports Reuters. CBS added those allegations in a revised copyright lawsuit centered on Dish's AutoHop, a feature in the Hopper HD-DVR that automatically skips commercials in recorded prime-time programming from the nation's major broadcasters. CBS claims Dish "deliberately failed" to disclose that it had developed AutoHop and argues that it would not have struck a new retrans deal based on the current terms if the broadcaster was aware of the feature. (See Dish, Broadcasters Go to War Over Ad-Zapper.)
  • 3net, the Sony Corp., Discovery Communications Inc. and IMAX joint venture, has landed the biggest fish of them all. Comcast Corp. has struck a deal to carry programming from the 3-D channel on a part-time basis starting Jan. 28, with plans to offer "select" video-on-demand (VoD) titles from the network at a later date. Initially, Comcast will offer three hours of 3net programming each day (at least five days per week) on the MSO's own Xfinity 3D channel. In addition to 3-D programming, 3net is also set to produce some new series in the new UltraHD/4K format. (See 3net Puts 4K TV in the Picture.)
  • Synacor Inc. has inked an expanded TV Everywhere authentication deal with Cable ONE Inc., a Tier 2 MSO that serves more than 740,000 subs in 19 states. In addition to providing authentication for the HBO GO and MAX GO services via Cable ONE's customer portal, the new deal also covers similar access to Hulu LLC and TV Everywhere content from Fox Broadcasting Co., Turner Broadcasting System Inc. and Big Ten Network. — Jeff Baumgartner, Site Editor, Light Reading Cable

    (3)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    User Rank: Light Sabre
    1/25/2013 | 12:01:15 AM
    re: Netflix Surges on Profit, Subscriber Gains
    In other news, the lines for the lottery machines are out the door again.
    Jeff Baumgartner
    Jeff Baumgartner,
    User Rank: Light Beer
    1/24/2013 | 8:25:45 PM
    re: Netflix Surges on Profit, Subscriber Gains
    And Netflix is still on the rise.. Shares were up $42.44 (41.10%) to $145.70 each in afternoon trading Thursday...
    Jeff Baumgartner
    Jeff Baumgartner,
    User Rank: Light Beer
    1/24/2013 | 5:49:09 PM
    re: Netflix Surges on Profit, Subscriber Gains
    Great quarter for Netflix, but Will Richmond notes why everyone shouldn't get too giddy about the company again-á just yet now that it seems to be righting itself after the Qwikster debacle and rate increases.-á Among warnings, he points out that Netflix will likely have trouble hitting those lofty subscriber predictions, Amazon is going after Netflix big time, and that Netflix's international expansion is still taking on water (-á $389 million for all of 2012). And there's more...
    From The Founder
    The comms industry is rallying to the cause of open, independent interoperability testing.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Telecom Innovators Video Showcase
    Tail-f, Cisco & What the Future Holds

    10|9|15   |   8:17   |   (0) comments

    Steve Saunders meets with Tail-f's Director of Technology, Carl Moberg, in Stockholm to discuss becoming part of Cisco, ETSI MANO, virtualization and the need to combine science and business in order to create opportunities for service providers.
    LRTV Interviews
    Broadband Forum Embraces SDN & NFV

    10|9|15   |   02:42   |   (0) comments

    At Gigabit Europe 2015, Robin Mersh and Kevin Foster from the Broadband Forum explain how the industry body is adapting to meet the SDN, NFV and cloud needs of the access network sector.
    LRTV Interviews
    Top Tips for FTTH Operators

    10|8|15   |   02:26   |   (0) comments

    At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
    LRTV Interviews
    M-net Calls for FTTx Unity

    10|8|15   |   03:45   |   (0) comments

    At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
    LRTV Documentaries
    The Business Case Challenge for NFV

    10|7|15   |   03:47   |   (0) comments

    Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
    LRTV Interviews
    JT Offers Some Gigabit Lessons

    10|7|15   |   4:08   |   (1) comment

    Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
    LRTV Interviews
    AT&T's Chiosi on the Potential of Open Source

    10|6|15   |   06:27   |   (0) comments

    AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
    LRTV Interviews
    Network Security in a Gigabit World

    10|6|15   |   05:52   |   (0) comments

    Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
    LRTV Documentaries
    Telefónica: In Search of Virtual Simplicity

    10|5|15   |   07:30   |   (0) comments

    Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
    LRTV Interviews
    Gigabit Europe Takeaways

    10|5|15   |   03:47   |   (0) comments

    Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
    Women in Comms Introduction Videos
    Intel Urges Women to Take Advantage of Their Seat at the Table

    10|5|15   |   4:27   |   (1) comment

    Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
    LRTV Interviews
    BT Updates on Plans

    10|2|15   |   03:16   |   (2) comments

    Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
    Upcoming Live Events
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
    Hot Topics
    M&A Speculation Swirls Around Juniper
    Ray Le Maistre, Editor-in-chief, 10/6/2015
    Cisco's Chambers Rules Out Political Bid
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
    Cord Cutting? 'Fraid so.
    Brett Sappington, 10/7/2015
    Infinera Fleshes Out Its Metro 100G Story
    Ray Le Maistre, Editor-in-chief, 10/7/2015
    Cisco Makes 'Martian' Connection
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/9/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
    Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
    Cats with Phones
    "What?! I'm on with Finisar about their stock price tanking" Click Here