Netflix chief: Redbox is our only competition
Everything else, including Hulu, is just 'noise,' CEO saysRedbox is competition for Netflix and everything else is just "noise," Netflix CEO Reed Hastings said Wednesday.
Hastings was speaking to analysts about the company's quarterly earnings, which surpassed expectations on the profit side but not on the revenue side.
Netflix also said it added another million subscribers to its ranks, putting the DVD-by-mail company at 15 million. It predicted it would have as many as 16.7 million subs by the end of the current quarter and 18.5 million by the end of the year.
The company earned $43.5 million in the period, up 35% from the same frame last year, on revenue that rose 27% to $520 million.
Outstripping the company's financial growth is that of its stock price: It ended regular trading Wednesday at $119.65, up nearly 170% in the past year. Investors were taking profits in after-hours trading, though, with the stock down as much as 9%.
While those Redbox kiosks that rent DVDs for a buck a day are worrisome, Hulu, which streams content over the Internet, is not, Hastings said, because it so far lacks scale, especially the $9.99-per-month Hulu Plus, now in preview mode.
Hulu Plus, he said, "is too small to matter."