Netflix's streaming makes millions

The Northern California-based company said revenue climbed to US$1.02bn as it added 2.03m new subscribers to its user base in the first three months of this year.

Profit for the quarter was US$3m, compared with a loss of US$5m last year.

The company boasted of "wins" in the quarter that included new algorithms for better recommending shows or films based on what people have viewed.

The launch of the "House of Cards" original series was also used to test an improved method for promoting programmes to viewers based on their expressed tastes.

Netflix planned to roll out "profiles" in the coming months that would enable viewing suggestions to be tailored to individuals in homes where various family members generally share an account.

Netflix accounts allow for two shows or films to be streamed simultaneously suggesting that most users belong to multi-member households in which people may be watching shows in different rooms at the same time.

This year, Netflix will introduce a plan allowing four shows to be streamed simultaneously at a price that's about 50% higher than the $8 subscription charged for accounts today, according to chief executive Reed Hastings.

Multiple viewers in each household

He downplayed the potential for losing revenue due to people sharing Netflix accounts.

"We like to think that a husband and wife can share an account and that is perfectly appropriate," Hastings said during a video call with financial analysts.

"We really don't think there is much sharing of passwords between casual acquaintances," he said.

Hastings said Netflix was making exclusive content that attracts members and keeps them loyal to the service a priority for the coming year.

"Long-term, we believe the value of our original series in driving acquisition and retention of subscribers will be borne out as we add more seasons of already popular shows," Netflix said in a letter to investors.

The siblings behind the blockbuster "Matrix" sci-fi movie franchise are planning to distribute their first TV series via Netflix next year.

New Sense8 exclusive launch

Netflix said Andy and Lana Wachowski's "Sense8", which it called "a gripping global tale of minds linked and souls hunted", would go out exclusively to its members "to watch instantly in late 2014."

Primarily a platform for viewing recent and not-so-recent films and TV shows, Netflix branched out into original programming with the political thriller "House of Cards" starring Kevin Spacey.

Breaking with convention, it released all 13 episodes of "House of Cards" in one go on in February to the delight of fans of so-called "binge viewing." A second season is in the pipeline.

Netflix will make the entire fourth season of "Arrested Development" available for streaming beginning at the end of May.

"We are feeling very good about a release strategy of all episodes at once," Hastings said.

"I think with the continuing roll-out of these original shows you will see a very nice redefining and broadening of what Netflix is," he added.

A total of more than four billion hours of films and television shows was streamed at Netflix in the first quarter, with slightly more than 36m members using the service.

Source: AFP via I-Net Bridge