Netflix profits plunge, but streamer still plans global domination

Results follow increasingly gobby policy demands

The Netflix smartwatch: fun in the urinal, or wherever you want a house of cards

Online gogglebox Netflix posted a 22 per cent increase in sales, to $1.64bn (£1bn), for its second quarter results, while profits plummeted by 63 per cent to $26m (£17m).

The falling profits reflect the company's global domination plans and investment in self-commissioned drama.

The streamer now has 65 million members, 23 million of those outside the US.

Yesterday, Netflix piped up in support of the Charter Communications merger with Time Warner Cable and Bright House Networks.

In a filing to the Federal Communications Commission it said the deal represented a "substantial public interest benefit".

It said: "Accordingly, Netflix supports the proposed Charter, Time Warner Cable transactions, if it incorporates the merger conditions proposed by Charter."

Netflix is offering its support for the deal thanks to an offer Charter has made to continue its free interconnect deal with Netflix, should the acquisition go through.

The streamer has become increasingly vocal on the subject of communications policy, acting as a key opponent to Comcast’s recent failed takeover of Time Warner Cable.

In a statement on its results, Reed Hastings, the chief executive of Netflix, said: "We’re pleased to see the growing momentum of our original programming driving strong growth in the US and abroad."

"With our first set of international markets having achieved contribution profitability, we’ll be making our first foray into Asia this autumn with our Japan launch, and are gearing up to offer our service around the globe." ®


Biting the hand that feeds IT © 1998–2017