Netflix released their Q3 earning yesterday, and the numbers in the U.S. show an eventful year. Although profits are up 63% since last year, they have lost 800,000 of their subscribers since their Q2 report, and share price has dropped 27%.
With the recent loss of Starz content, and the increasing popularity of Amazon Prime and Hulu/HuluPlus, it would seem the road ahead looks far from smooth.
In the US, Netflix have increased their monthly fee, as well as adding streaming-only and disc-only plans to their service. Global expansion has also been a priority, adding service to much of Latin America and preparing to launch in the UK in early 2012.
The grass is certainly greener on the other side of the 49th parallel.
In Canada, Netflix are enjoying huge success, with a low price model and over a million subscribers. In fact, they have even managed to post a small profit in Q3. As the most common complaint by Canadian Netfilx patrons is content, Netflix have announced that over the next year they will be doubling their quarterly content spending, bringing new movies and television shows to an audience craving more.
While the new investment in content will most likely lose Netflix Canada money in the short run, they claim that by the time the new content is added, Netflix Canada will boast comparable content to the U.S.