What a difference a year — and original programming — makes. Netflix's stock rose 10 percent following its better-than-expected third quarter earnings report, which saw the service adding about 1.3 million domestic subscribers. But what really impressed investors was its bottom line: Netflix brought in $1.1 billion of revenue and earnings per share of $0.52. That is way up from then $0.13 per share Netflix reported for the third quarter of 2012, sending its stock down nearly 17 percent.
As The Hollywood Reporter's Paul Bond pointed out, Netflix's stock has climbed 445 percent in a year, the same year that saw the launch of original programming like House of Cards and Orange Is the New Black. In his letter to shareholders, CEO Reed Hastings touted the success of Orange, which he said, along with the network's Emmy nominations, helped lift domestic additions. "Orange Is the New Black has been a tremendous success for us," Hastings wrote. "It will end the year as our most watched original series ever and, as with each of our other previously launched originals, enjoys an audience comparable with successful shows on cable and broadcast TV." Hastings announced that the company will double their investment in original content next year, which still represents "less than 10% of [their] overall global content expense."
Netflix's shares closed Monday at $354.99, up more than 6 percent, and then after the earnings report was released, rose nearly another 10 percent in after hours trading to nearly $390. How well they're doing even had Time's James Poniewozik declaring "Orange Is the New Green."
This article is from the archive of our partner The Wire.