Since its inception, Netflix has transformed from DVD-by-mail propagator to one of the world's leading subscription-based online media streaming service.
As the Los Gatos, California-based company makes progress on becoming a Web-based television network, it finally overtook HBO in overall total domestic subscribers and saw a net income jump of 315 percent, according to its quarterly earnings report that was released late Monday.
In April, Netflix overtook HBO's domestic subscribers with 29.1 million subscribers to 28.7. Rapid expansion to Latin America, Ireland, the U.K. and Scandinavian territories as led to growth as well. Last week, Netflix stocks reached an all-time high of $336.48 per share. As of today, the company has 40 million worldwide subscribers and a third-quarter net income of $32 million.
The company's success also comes from two other important factors.
Monthly pricing structures come into play as Netflix's streaming service starts at $8 a month while HBO can cost up to $25 per month. Netflix also has supplemented its movie and TV catalog with original programing including "House of Cards," "Orange is The New Black," the return of "Arrested Development," and "Hemlock Grove."
On the whole, Netflix's original programing has earned them a total of 14 Academy of Television Arts and Sciences nominations this year. "House of Cards" made Netflix history as series director David Fincher won an prime-time Emmy for best director for a dramatic series. The political drama staring Kevin Spacey also won a creative Emmy for outstanding casting for a drama series and outstanding cinematography for a single-camera series. Netflix recently pulled out the big guns by having Sony Pictures Television sign on as a producers for an as-yet unknown psychological thriller series from the creators of "Damages."
Netflix is also in talks with U.S. Cable providers including Cox Communications Inc, Suddenlink Communications, RCN Telecom Services and Atlantic Broadband Finance LLC to integrate Netflix with their own programing. Currently, subscribes can use the service on a plethora of mobile devices, video game consoles and streaming media devices among others.
