US video rental group Netflix passed the milestone of 20 million susbcribers in the fourth quarter. The company added a net 3.08 million new customers in the period to finish 2010 with a total 20.01 million. Netflix reported quarterly revenues of USD 596 million, up 34 percent year-on-year, and operating profit of USD 78 million, up 47 percent. Net profit rose to USD 47 million or 87 cents a share, from USD 31 million or 56 cents a share a year earlier. Netflix generated free cash flow of USD 51 million in the quarter. The company said profits were supported by slower than expected DVD rentals and more online streaming by customers, a trend it expects to continue this year. It's new Canada business also performed well and is expected to turn profitable by Q3. A second international market will launch this year. The acceleration in subscriber growth should help the company invest in expanding content available and improving its technical platform. Netflix expects the customer base to reach 21.9-22.8 million in Q1 in the US, plus another 750,000 to 900,000 in Canada. Net profit for the current quarter is estimated at USD 49-62 million, on revenues of USD 694-717 million.
