Netflix (Nasdaq: NFLX) stock jumped nearly 40 percent Thursday after it reported that it picked up 2.1 million streaming video subscribers during the fourth quarter.
While Netflix CEO Reed Hastings told shareholders the online video provider faces increased competition from pay TV providers distributing TV Everywhere content, the company managed to exceed subscriber growth projections. It now counts 27.2 million U.S. streaming video subscribers.
"In terms of domestic competition, TV Everywhere, including HBO Go, continues to improve, and linear TV distributors clearly see the benefit of offering Internet TV. This competition for viewing time will increase over the next several years, as we have long predicted, as consumers come to expect Internet TV on demand viewing for all their video entertainment," Hastings wrote in a letter to shareholders.
Netflix reported $945 million in revenue from the fourth quarter, up 8 percent compared to the same period in 2011. Its net income dropped 78 percent to $8 million. Shares in Netflix were trading at $142.97 at 12 p.m. ET on Thursday, up $39.71, or 38.45 percent.
- see letter to shareholders (.pdf)
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