Netflix announced on Monday, the 22nd, its results for the second fiscal quarter of 2013 and deeply disappointed shareholders. The number of new subscriptions to the service was below expectations, causing the company’s shares to plummet by 7% during the after-market.
During the quarter, the company registered just 1.2 million new subscriptions worldwide. To reverse the situation, the company announced to investors its plans for the future, which increasingly involve bets on original content.
“Netflix has become a major destination for fans of loved and often poorly distributed genres,” the statement said. Thus, the company can start investing in stand-up comedy and documentaries, in addition to the programs it already produces.
Only this year, Netflix has released the series House of Cards, Hemlock Grove, Orange is the New Black and the fourth season of the series Arrested Development, canceled in 2006, but which has always been a critical success. The company also launched in 2012 Lillyhammer, its first own series.
With good reception, all series have already been renewed for a second season, except Arrested Development, which, despite the interest, remains in doubt, despite the manifest interest, given the positive reaction of the fans.
According to Netflix, costs related to exclusive and original programming of only 5% compared to $ 3 billion in costs related to content. Ultimately, the company ended the quarter with $ 1 billion in revenue, with a profit of $ 57 million.
The company also promises that in the third quarter it will launch the feature of profiles for the accounts. The tool should allow different people to receive different content suggestions, based on their tastes.