Light Reading

Netflix Surges on Profit, Subscriber Gains

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
1/24/2013
50%
50%

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
    mendyk
    50%
    50%
    mendyk,
    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
    50%
    50%
    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
    50%
    50%
    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...
    http://www.videonuze.com/artic...
    Flash Poll
    From The Founder
    Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
    LRTV Documentaries
    Verizon's Emmons: SDN Key to Cost-Effective Scaling

    5|22|15   |   03:53   |   (0) comments


    For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
    LRTV Documentaries
    Lack of Universal SDN a Challenge

    5|21|15   |   04:51   |   (3) comments


    Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
    LRTV Custom TV
    Steve Vogelsang Interview: Carrier SDN

    5|20|15   |   05:02   |   (0) comments


    Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
    LRTV Custom TV
    Carrier SDN: On-Demand Networks for an On-Demand World

    5|20|15   |   20:52   |   (0) comments


    Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
    LRTV Documentaries
    The Security Challenge of SDN

    5|19|15   |   02:52   |   (0) comments


    CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
    LRTV Custom TV
    NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

    5|18|15   |   5:50   |   (0) comments


    Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
    LRTV Huawei Video Resource Center
    Bay Area Spark Meetup 2015

    5|14|15   |   3:54   |   (0) comments


    Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
    LRTV Custom TV
    The Transport SDN Buzz

    5|12|15   |   06:01   |   (1) comment


    Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
    LRTV Custom TV
    Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

    5|5|15   |   04:49   |   (0) comments


    John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
    LRTV Custom TV
    Meeting the Demands of Bandwidth & Service Group Growth

    5|1|15   |   5:35   |   (0) comments


    Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
    LRTV Custom TV
    DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

    4|29|15   |   03:48   |   (0) comments


    John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
    LRTV Huawei Video Resource Center
    Predicting Traffic Patterns for Quality Mobile Broadband

    4|29|15   |   6:45   |   (0) comments


    Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
    Upcoming Live Events
    June 8, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
    Hot Topics
    Verizon Saves 60% Swapping Copper for Fiber
    Sarah Thomas, Editorial Operations Director, 5/19/2015
    Choosing a Technology Supplier? Consider Changing Your Selection Criteria
    Steve Saunders, CEO and founder, Light Reading, 5/18/2015
    Chattanooga Charts Killer Gigabit Apps
    Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
    10 Alternate Uses for Tablets
    Eryn Leavens, Copy Desk Editor, 5/22/2015
    Smarter 'Dumb' TVs Will Drive OTT Adoption
    Mari Silbey, Senior Editor, Cable/Video, 5/18/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
    My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
    I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
    Cats with Phones