Streaming service Netflix has secured over 1 million subscribers in the UK in the six months since its launch.
He claims that it has surpassed LoveFilm and now sees BSkyB as its main competitor in the UK. “We believe we have pulled ahead of LoveFilm in every important streaming-related metric,” Hastings said. “Going forward, competing effectively with Sky is our core and substantial challenge.”
The news comes as the company reiterated plans to launch in another European market in the fourth quarter of this year. Earlier this year TBI revealed that Netflix would launch in Sweden before end-2012.
The company had put international expansion on hold to focus on returning to overall profitability. In its letter to shareholders, Netflix CEO Reed Hastings and CFO David Wells said: “Given our return to global profitability this quarter and our continued success in the UK, we announced last quarter that we’ve decided to open an additional attractive European market in Q4 of this year. We will have more to say about this market later in Q3.”
At the end of the second quarter, Netflix had 3 million paying subscribers internationally, slightly below forecasts, and 22.7 million in the US. Revenue from international services was US$65 million compared with US$19 million a year earlier. The quarterly loss was US$89 million compared with US$9 million a year earlier. Total revenue was US$889 million and profit was US$6 million compared with US$789 million and US$68 million respectively a year earlier.
Separately, Netflix management hinted at working with premium network HBO: “While we compete for content and viewing time with HBO, it is also possible we will find opportunities to work together – just as we do with other networks,” Netflix said.