Netflix Inc. (NASDAQ: NFLX) announced its financial results for the first quarter of the year, reporting higher revenue and income for the quarter, though its performance wasnt enough to counter negative investor sentiment from the companys disappointing second-quarter outlook.

Netflix reported sluggishness in its DVD business and warned that its growing streaming business is also likely to result in increased costs and will affect the margins.  However, it reported growth in its streaming video segment and reported a 69% increase in its quarterly income. The company’s net income for the quarter stood at $719 million, or  $1.11 per share.

The company expects to earn in the range of $0.93 and $1.15 per share during the current quarter, though analysts had pegged their expectations at $1.18 per share.

Netflix said, “Our competitive strategy relative to other streaming services is simply to grow as fast as we can, so we can afford more content, more marketing, and more R&D than our competitors.”

The company added 3.3 million new subscribers during the first quarter. The company expects to increase its subscribers base by 1.2 million to 2 million during the current quarter.

Netflix is involved in the business of online movie rental business. The company is operational in the United States. It offers access to a vast library of television, movies and other entertainment media. The company offers streaming of some of its content. It also sends DVDs out via mail. The company also has collaborations with various other electronic companies such as Sony, where its content can be streamed using Sony’s Play Station console. Netflix was formed in 1997 and the company is based out of California.

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