'Arrested Development' Didn't Attract Many New Subscribers for Netflix

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By Lauren Indvik2013-07-22 20:53:59 UTC

Despite the big launch surrounding the fourth season of Arrested Development, which garnered only lukewarm reviews, Netflix attracted only a fraction of the streaming subscribers it brought on in quarters in the past.

After adding more than 2 million domestic subscribers in both the final quarter of 2012 and the first quarter of 2013, Netflix signed on only 630,000 subscribers this quarter, bringing the total to 28.62 million paying domestic subscribers, according to the company's second quarter earnings report. International numbers were weak, too: The company added 610,000 international members, after signing up 1.81 million in Q4 2012 and 1.02 million in Q1 2013. International paying subscribers now number 7.1 million.

See also: ‘Orange Is the New Black’ Is the Series Netflix Was Made For

To be fair, the second quarter has not historically been strong for Netflix. Last year at this time, Netflix added only 530,000 domestic and 560,000 international subscribers to its streaming service. In an earnings statement, CEO Reed Hastings said Arrested Development generated "a small but noticeable bump in membership when we released it" but that "other great shows don’t have that noticeable effect in their first season because they are less established."

Netflix's domestic DVD service continues to decline, dropping to 7.51 million subscribers, roughly half a million less than it had at the end of Q1.

On the bright side, revenue and profits were strong, the former up 26% domestically and 155% internationally year-over-year. Net income was $29 million, up from $6 million a year ago. Earnings per share were $0.49, a jump from $0.11 last year.

Netflix is expecting stronger membership figures next quarter, forecasting 1.09 million additional domestic streaming subscribers and 90,000 additional international subscribers. The company didn't release a revenue forecast, but said it's expecting net income of $26 million and earnings of $0.43 per share.

Investors didn't appear to be too pleased with Netflix's performance; shares were trading down 6.7% to 17.20 in after hours.

Image: Getty Images/Stringer

Topics: arrested development, Business, netflix, Television, Video