Netflix shares rise after usage spikes in June
Thu Jul 5, 2012 12:20pm EDT
(Reuters) – Netflix Inc (NFLX.O) shares rose 12 percent on Thursday after its top executive disclosed a massive surge in customer usage, but analysts questioned the movie-rental company’s ability to convert that into revenue.
Chief Executive Reed Hastings said on Tuesday on Facebook that Netflix subscribers watched 1 billion hours of TV shows and movies in June. This compares to the 2 billion hours that was watched in the fourth quarter of 2011 — when Netflix last reported this data.
“When ‘House of Cards’ and ‘Arrested Development’ debut, we’ll blow these records away,” Hastings said in the post.
Netflix will stream American television series “House of Cards” later this year and plans to air 10 episodes of sitcom “Arrested Development” in 2013.
Wedbush analyst Michael Patcher said the increase in viewing time might just lead to an increase in content costs for the Los Gatos, California-based company.
“Netflix is an all you can eat buffet, and if the buffet sees its consumption go up by 50 percent and they don’t
Category: Technology
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