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Last updated on April 24, 2014 at 1:21 EDT

Netflix Streamed 1 Billion Hours Of Video In June

July 4, 2012

redOrbit Staff & Wire Reports – Your Universe Online

Netflix subscribers watched a total of 1 billion hours of movies and TV shows online in June, the company´s chief executive said on Tuesday.

The company has 23.2 million streaming customers worldwide, meaning each viewed, on average, 43 hours of video for the month, or nearly 1 1/2 hours per day.

“Congrats to Ted Sarandos, and his amazing content licensing team. Netflix monthly viewing exceeded 1 billion hours for the first time ever in June,” wrote Netflix CEO Reed Hastings in a posting on his Facebook page on Tuesday.

The milestone represents a new monthly record for the online and mail order video company, and is further proof that Netflix is gradually luring customers away from traditional TV viewing.

More than 60% of the video streamed from Netflix is TV programs, not movies. The company has been working to acquire more exclusive content to ward off Amazon, Hulu and other streaming video services rivals.

“When ℠House of Cards´ and ℠Arrested Development´ debut, we´ll blow these records away,” Hastings wrote.

The company is also moving into original programming, with the U.S. debut of the Norwegian comedy “Lilyhammer,” starring Steven Van Zandt, in February. It is also building its own content delivery network to deliver its bandwidth-intensive video.

Hastings has said that Netflix relies upon growth in streaming to retain subscribers, and to avoid spending marketing dollars to replace unhappy customers.

The company was hurt last summer by a surprise price increase that angered many consumers. That, along with plans it announced — and later rescinded — to rebrand its DVD-by-mail service, resulted in a loss of nearly 800,000 customers.

But the Los Gatos, CA-based company´s record-setting June may be a sign its problems are behind them.

Netflix declined to disclose its previous record for monthly viewership, but said in January that subscribers had watched more than 2 billion hours of video during the last three months of 2011.

Shares of Netflix´s stock rose on news of its June viewership, closing the shortened holiday trading day at $72.04, a 6.2 percent increase and its biggest one-day gain since May 23.


Source: redOrbit Staff & Wire Reports - Your Universe Online