Netflix Q2 Profit Increases by 22 percent

Netflix saw a 22 percent profit in its Q2 earnings; this was thanks to an increase in subscriber growth along with higher margins. Shares took a dive after-hours, a knock on affect from the company’s future growth as well as its operating margins.

Netflix shares gave back gains of around 3 percent, a direct result of executives saying that for the next few years, operating margins will remain at 10 percent. According to The Wall Street Journal, Netflix aims to spend more money on its licensing content.

Since the start of the year, Netflix shares are up by almost 60 percent. This is a direct result of the recession, as consumers choose to stay in and watch a movie instead of going to the cinema. Netflix now faces some tough competition from standalone DVD kiosks.

Read the full article of at WSJ