With sales up, Netflix to debut high-definition and Blu-ray formats
Online movie rental pioneer Netflix Inc. registered sales of $195 million in the fourth quarter of 2005, up 46% from $143.9 million in fourth quarter 2004. Earnings during the fourth quarter of 2005 hit $38.1 million, up 580% from $5.6 million. Financial information for the 2005 fiscal year has yet to be released.
During the fourth quarter, Netflix added 587,000 customers, increasing total subscribers to 4.18 million. The company, No. 18 in the Internet Retailer Top 400 Guide to Retail Web Sites, charges from $9.99 to $17.99 per month to rent multiple DVDs. Subscribers can keep each DVD as long as they wish. Once a movie is returned in a postage-paid envelope, Netflix sends out the next selection on a customer’s online wish list.
Netflix will also offer the first films available in HD DVD when the new high-definition format is introduced in March, according to plans outlined by several major studios. Netflix added it will offer films in the Blu-ray format when that launches later this year.
Blu-ray, also known as Blu-ray Disc, is a next-generation optical disc format designed to enable recording, rewriting and playback of high-definition video, as well as storage of large amounts of data. A Blu-ray disc can hold 25GB, which can record more than 2 hours of HDTV or more than 13 hours of standard-definition TV. There also is a dual-layer version of the disc that can hold 50GB.
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