Netflix reports jump in subscriber base to more than 12 million

Netflix, the online DVD and Blu-ray disc rental, was launched in 1999, and it took 4 years for the company to reach the subscriber base of 1 million.

Now the company has reported 1.1 million new subscribers in the fourth-quarter, the highest number of subscribers ever reported by Netflix.

Apart from the increase in subscriber base, the company also reported that its fourth quarter revenue has increased 4 percent to $444.5 million, while the net income has risen 36 percent to $30.9 million.

For the whole year, revenue rose by 22 percent to $1.67 billion, and net income increased by 40 percent to $115.9 million.

Netflix foraying into the game console market
One of the reasons for this increase in customer base and profit is that the company is increasingly foraying into the game console market.

Since long, Netflix has been offering streaming facility on a broad range of devices like the Roku digital video player, Internet-connected TV sets, Blu-ray players, Xbox 360 etc.

In November the company also started offering the service on PlayStation 3. Considering the nine million users of PS3 in the nation and 25 million worldwide, the new partnership has definitely helped Netflix increase its customers.

Lately, the online DVD rental service has announced that it will also be offering the streaming service on Nintendo’s Wii game console from spring onwards.

Netflix is hopeful to increase its customer base to around 16 million by the end of this year.

Netflix eager to tap international market
Currently Netflix has its operations limited to United States only. But now the company is planning to enter a new country later this year.

Company’s Chief Executive Reed Hastings was quoted by Reuters as saying, “We are focused on entering one country and seeing how we do. Because we are launching in the second half of the year I don't think we could do a second country this year."

Though Hastings did not name the country, he stated that after United States the big market for Hollywood content is Europe, followed by Asia.