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Netflix Growing Faster in 2010

October 23rd, 2010 Posted in News

As the premiere renter of movies over the web and also via the United States Postal Service, Netflix has long been making a name for itself as an innovative tech business model which continues to flourish. In fact, in the previous quarter of 2010, the company added more than 1 million subscribers. That means the transition from DVD rentals as their primary form of business really is progressing and the streaming movie market is opening up as many experts in the video tech industry had thought that it might. In fact, the company is now saying that DVDs by mail are turning into their secondary offering to consumers, according to the CEO of Netflix, Reed Hasting. This 3rd quarter boost means that the company’s net income rose to $38 million which is over 25% than the same quarter in 2009 and that translates to a 70 cents per share rise, far higher than in 2009. with revenues of $553.2 million, this is a huge showing by the company and proves the triumph of streaming media.

The streaming media model had been in doubt as some industry experts in retail were not sure the average consumer would be willing to stream games and would, instead, prefer the boxed editions. Each time technology has changed in the United States in a significant way this has proven to be an argument made by supporters of the previous tech advance. Still, Americans are proving more than willing to buy into new ideas and this means that with the rise of smart phones, set top boxes for TVs and a host of other technologies designed to deliver HD quality video, the streaming media advances should come hard and fast from here on out, many experts are saying.

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