Why Blockbuster is almost belly up

Unlike Netflix, they refused to the writing on the wall that streaming is the way to go.

Netflix reported revenue of $553.2 million, a 31 percent increase since last year and a 6 percent jump from last quarter. Profit landed at $38 million, a 26 percent increase from last year.

The company now has 16.9 million subscribers, up 52 percent from the 11.1 million customers it had last year and up 13 percent from the 15 million it had last quarter. Of that 16.9 million, 94 percent are paid subscribers.

Though Netflix still spends between $500 million and $600 million each year mailing its DVDs to customers, chief executive Reed Hastings said its future was streaming.

“By every measure, we are now a streaming company, which also offers DVD-by-mail,” he said in a statement. “In Q4, we’ll spend more on streaming content than DVD content, and we’ll deliver many more hours of entertainment via streaming than on DVD.”

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