Netflix Inc.'s fourth-quarter profit climbed 36% as the DVD streaming and rental company added more than a million subscribers while reducing the costs to keep them.
Netflix ended the quarter with 12.3 million subscribers, its year-end target, representing a gain of 10% from the third quarter and 31% from a year earlier.
Meanwhile, subscriber-acquisition costs—a closely watched measure for Netflix investors—fell 5.4% to $25.23 per subscriber from a year earlier. And the churn rate, a measure of customer cancellations and free subscribers, declined to 3.9% from 4.2%.
The company has begun streaming its movies through a wider array of electronic devices, such as Sony Corp.'s Playstation 3 and Nintendo Co.'s Wii game consoles, as a way to combat increased competition from stand-alone DVD-rental kiosks and online video services.
For the latest quarter, Netflix reported a profit of $30.9 million, or 56 cents a share, up from $22.7 million, or 38 cents a share, a year earlier. Excluding items, per-share earnings rose to 59 cents from 41 cents.
Revenue increased 24% to $444.5 million.
Netflix also projected first-quarter revenue above the average analyst estimate.
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