Netflix Members Streamed 2 Billion Hours In Q4
Netflix Inc. NFLX -1.02% said its members watched more than 2 billion hours of TV shows and movies through its streaming service during the fourth quarter, as the company continues to increase its focus on building its streaming-content offerings.
The company, which began as a DVD-by-mail business, has about 20 million streaming members worldwide. As the cost to stream videos is far lower than shipping DVDs to customers, Netflix executives have placed an increasing emphasis on streaming.
But in July, Netflix outraged a vocal contingent of subscribers by effectively raising fees 60% for those using its combination DVD-and-streaming video plan. It then said it would split its traditional DVD and streaming businesses and rename the DVD-by-mail side Qwikster, but scrapped the plan a few weeks later.
Throughout last year, Netflix signed several deals to increase its streaming offerings, including adding shows from the CW network and Walt Disney Co. DIS +2.16% movies and TV shows. The company also is developing its own original content, including “Lilyhammer,” a story about a New York gangster in Norway, which premieres next month.
In October, Netflix said its third-quarter earnings surged on a big jump in revenue, but it predicted weak results in the fourth quarter.
Shares were trading down 1% at $71.50 in the premarket. As of Tuesday’s close, the stock was down 37% over the past three months.