Q3 revenue at Netflix rises 48% to $256 million

Revenue at Netflix rose 48% to $256 million for the third quarter ended Sept. 30, as it netted 493,000 new subscribers for a total subscriber base of 5.7 million at the end of the quarter, the company said today.

Net income for Q3 rose 85.5% to $12.8 million from $6.9 million a year ago, and gross margin increased to 38% from 33.1%. Netflix is No. 21 in the Internet Retailer Top 500 Guide to Retail Web Sites.

Subscriber acquisition cost rose 25% to $45.32 from $36.33. Churn, or the percentage of subscribers who decline to renew their subscriptions, was 4.2% in Q3, down slightly from 4.3% a year ago.