Netflix, Inc. (NASDAQ:NFLX) is an Internet television network that provides its customers with on-demand streaming media.
It is one of the world’s leading subscription-based television show and movie rental services, with approximately 44 million streaming members across 40 countries in North America, South America, and Europe.
The company was founded in 1997 by Marc Randolph and Reed Hastings in Scotts Valley, California.
The website originally had a traditional single-rental model of mailing DVDs. In September 1999 the company introduced the monthly subscription model. It was offered to Blockbuster for $50 million in 2000, however, Blockbuster declined the offer.
In 2002 Netflix Inc. went public on the NASDAQ Stock Market (at a price of US $15.00 per share). By 2005 the company had 35,000 film titles available and it was shipping out around 1 million DVDs on a daily basis.
In 2007 the company made a drastic change from its original business model of mailing DVDs with the introduction of watching videos on demand via the Internet.
Netflix flourished with its online streaming video business model. By 2010 it was one of the biggest sources of Internet traffic in the United States. It is now considered to be a pioneer in the Internet delivery of TV shows and movies.
The Company has three main business operating segments: Domestic streaming, International streaming and Domestic DVD.
Netflix, Inc. – Company Overview
- CEO: Reed Hastings
- CFO: David Wells
- Type: Public
- Industry: Video Rental
- Listed on the NASDAQ Stock Market
- NASDAQ stock ticker symbol: NFLX
- S&P 500 Component
- Revenue: $4.374 billion USD (2013)
- Net income: $112 million USD (2013)
- Diluted earnings per share: $1.85 USD (2013)
- Employees: 2,022 (2013)
- Corporate headquarters: 100 Winchester Circle Los Gatos, California 95032, USA
- Corporate contact number: (408) 540-3700
- Website: http://netflix.com/
- Investor relations website: http://ir.netflix.com/
Netflix, Inc. – Live Stock Market Data
Netflix, Inc. – Financial Results
| Operating data (in $ thousands) | 2013 | 2012 |
| Revenues | $4,374,562 | $3,609,282 |
| Cost of revenues | $3,083,256 | $2,625,866 |
| Marketing expenses | $503,889 | $465,400 |
| Technology and development expenses | $378,769 | $329,008 |
| General and administrative expenses | $180,301 | $139,016 |
| Operating income | $228,347 | $49,992 |
| Income before income taxes | $171,074 | $30,480 |
| Provision for income taxes | $58,671 | $13,328 |
| Net income | $112,403 | $17,152 |
| Comprehensive income | $113,059 | $19,365 |
| Balance sheet data (in $ thousands) | ||
| Total assets | $5,412,563 | $3,967,890 |
| Total liabilities | $4,079,002 | $3,223,217 |
| Total stockholders’ equity | $1,333,561 | $744,673 |
| Cash flow data (in $ thousands) | ||
| Net cash provided by operating activities | $97,831 | $21,586 |
| Net cash used in investing activities | $(255,968) | $(244,740) |
| Net cash provided by financing activities | $476,264 | $5,589 |
| Cash and cash equivalents at end of year | $604,965 | $290,291 |
| Common share data (in $) | ||
| Basic earnings (loss) per common share | $1.93 | $0.31 |
| Diluted earnings (loss) per common share | $1.85 | $0.29 |
Source: “Netflix, Inc., 2013 FORM 10-K Annual Report”
Netflix news reported by the Market Business News team:
July 22, 2014: Netflix profits for the second quarter 2014 more than doubled to $71 million while revenues shot up by nearly 50% to $1.2 billion, compared to the same quarter last year. The company now has more than 50 million active users in 40 different countries. It is making major inroads into Western European economies.
July 19, 2014: Did Verizon unwittingly admit that it slows Netflix connections? According to comments in a blog by Mark Taylor, Vice President of Content and Media at Level 3, a firm Netflix pays to deliver traffic to Internet service providers, Verizon has clearly shown it is at fault.
June 15, 2014: The Federal Communications Commission (FCC) will investigate the Netflix versus Verizon feud in order to find out what is happening and “whether consumers are being harmed.” The FCC emphasized that its aim is simply to gather information, not regulation. Consumers want answers, they want transparency, and so does the FCC, it added.
June 6, 2014: Verizon sends Netflix a “cease and desist” letter to stop Netflix from telling its customers that Verizon’s crowded network is what is causing slow download speed. Verizon customers who are also Netflix clients have received a message when connection is slow saying it is Verizon’s fault.
April 22, 2014: 2.25 million new members were added in the US in the first quarter of 2014, reaching a total of 35.7 million American members.
January 22, 2014: The company now has 44 million members and expects to end this quarter with 48 million. The company also stated that it will eventually offer new subscribers a number of options, such as a reduced $6.99 price for single-person usage, as well as a three-stream option.