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Netflix snatches 9 millionth subscriber, says Watch Instantly still not profitable

Darren Murph

While snagging 500,000 Blu-ray subscribers is admirable, the big picture helps to explain Netflix's dominance even more. Sometime during the third quarter of 2008, the rental giant managed to secure its nine millionth customer. Needless to say, the DVD rental portion of the business is doing just fine, but CFO Barry McCarthy confessed that its Watch Instantly digital delivery aspect was still "a tax on the P&L." Essentially, he reiterated that it was an investment in the future, noting that if it didn't start it, someone else would have. He also proclaimed that more content could easily be added to its library of online-accessible titles, but that it wouldn't come free. At present time, we suspect Watch Instantly isn't really hurting for users, which means you could very well be hurting for a new wave of content for some time to come.

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