Consumers are flocking to megaplexes, but they’re also staying home in droves to watch movies, especially those provided by Netflix.
The DVD-by-mail rental service added 510,000 subscribers during the last three months, a whopping 95% gain over the same quarter a year ago. It now has 11.1 million subs.
The addition helped the company report a 48% boost in profits during its third quarter, earning $30 million from $423 million in revenue, which was up 24%.
The numbers weren’t unexpected.
Rental revenue for the home entertainment biz grew nearly 9.9% in the three month period that ended Sept. 30, according to the Digital Entertainment Group, up from the 8.3% in the first half of the year.
Netflix has also been on a mission to increase subscriptions by promoting its online rental service that lets users digitally view movies through their TVs using their TiVos, Microsoft’s Xbox Live and Blu-ray players.
Given its recent performance, Netflix now anticipates having up to 12.3 million subs by the end of the year.