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NETFLIX NOW HAS MORE SUBSCRIBERS THAN HBO

October 22, 2013 by · Leave a Comment 

Netflix now has more subscribers than HBO. Reporting earnings for its third quarter, the online video rental company credited a four-fold leap in net earnings to $32 million from $8 million for the same quarter a year ago, Netflix credited the popularity of its original series such as House of Cards and Orange Is the New Black. The company said that the number of subscribers to its streaming service hit 31 million, versus 28.7 million for HBO. Worldwide, it said, the total number of Netflix subscribers rose to 40 million, versus 30 million at the same time a year ago. (HBO’s worldwide total stands at about 117 million, and it generated $1.6 billion in profit.) However, some analysts pointed out that cash flow from operations exceeded its net income, falling to just $7 million. The London Financial Times cautioned: “Netflix has little free cash flow despite a market cap of nearly $25 billion.” None of those continued warnings have dissuaded investors, however. One year ago, Netflix stock was listed at about $70. On Monday it rose 10 percent to $390.96. Commented the Wall Street Journal: “Wall Street doesn’t appear too concerned about Netflix’s slim profits so long as it generates growth and continues to stockpile high-quality content.”