Netflix (NFLX) Streaming Revenue Surpassed Several Cable Rivals in 2013
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Netflix (Nasdaq: NFLX) is catching up to rivals in terms of revenue, but profits still need some tweaking.
According to Re/code, citing data compiled by MoffetNathanson, Netflix is catching up to larger rivals in terms of overall turnover. Revenue for the company's Streaming segment reached $3.5 billion in 2013, versus $2.5 billion for similar categories at Scripps Networks (NYSE: SNI), $2.1 billion at CBS (NYSE: CBS), and $1.8 billion for Starz (Nasdaq: STRZA).
The number also compares favorably with HBO, which generated $4.9 billion of revenue last year. However, HBO's profit was $1.8 billion, versus $228 million for Netflix.
Despite the tighter margins, Netflix doesn't have to relay on being put into a bundle package. That means subs going to Netflix are going to Netflix, a stronger bond than having to make potential subs pay for other channels they aren't really interested in. Netflix last reported 44 million streaming subs and we can't remember the last time that number went down, though we suspect it might have been in 2011 when the company announced a new pricing scheme.
Shares of Netflix are about flat Wednesday.
According to Re/code, citing data compiled by MoffetNathanson, Netflix is catching up to larger rivals in terms of overall turnover. Revenue for the company's Streaming segment reached $3.5 billion in 2013, versus $2.5 billion for similar categories at Scripps Networks (NYSE: SNI), $2.1 billion at CBS (NYSE: CBS), and $1.8 billion for Starz (Nasdaq: STRZA).
The number also compares favorably with HBO, which generated $4.9 billion of revenue last year. However, HBO's profit was $1.8 billion, versus $228 million for Netflix.
Despite the tighter margins, Netflix doesn't have to relay on being put into a bundle package. That means subs going to Netflix are going to Netflix, a stronger bond than having to make potential subs pay for other channels they aren't really interested in. Netflix last reported 44 million streaming subs and we can't remember the last time that number went down, though we suspect it might have been in 2011 when the company announced a new pricing scheme.
Shares of Netflix are about flat Wednesday.
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