This year Netflix expects to sign up over 7 million subscribers to its streaming video rentals, despite the fact it just posted its first loss for a quarter in over seven years. The home video and streaming video rental company lost close to $5 million in the quarter ended March 31, 2012. That compared to over $60 million in income for the same quarter last year.
The company could see losses continue for the latest quarter, as it has forecasted between a loss of $6 million and a profit of $8 million for the second quarter of 2012. Reed Hastings, the company CEO and David Wells the CFO said that the company’s rapid return to profitability, that enables further expansion internationally is very gratifying.
The total number of Netflix subscribers in video streaming increased to 26.5 million, with more than 23 million located in the U.S. U.S. subscribers grew by 1.75 million in the first quarter of 2012. International subscribers grew by 1.21 million to total over 3.07 million. DVD subscribers in the U.S., dropped by nearly 1 million to nearly 10.1 million.
Analysts said the increase of subscribers in the U.S is important, after the company lost three quarters of a million subscribers last year due to a controversial price hike. However, more competition is on the way, as other companies will join the streaming business this year. Netflix shares opened Monday at $105 and dropped to $102. Another double-digit decrease took place in after hours trading as well.
