Netflix reports 79% year-to-year rise in number of subscribers
The subscriber base at Netflix Inc., which offers DVD rentals through Netflix.com, reached 1.29 million at the end of the third quarter, an increase of 13% over the prior quarter and 79% over the same period last year, the company reports. Paying customers accounted for 96% of all subscribers at the end of Q3, compared with 96% in the prior quarter and 95% a year ago.
In an effort to keep its customers satisfied and expand its subscriber base, Netflix is continuing its effort to offer next-day delivery service throughout most of the U.S This week it launched its 20th distribution center, in Cleveland, to expand next-day delivery service, and it expects to open more regional distribution centers by year-end. The company already offers next-day delivery to more than 70% of the U.S. population and by year-end expects to expand to more than 80%.
Netflix says it expects the expansion of next-day delivery service to help increase its penetration of households, following a trend in its original market area of San Francisco. Netflix has offered next-day delivery in the Bay Area for four years and now serves 5.4% of households there, compared to 1.2% in the rest of the U.S.
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