Video subscription service reporting earnings - 13 WTHR Indianapolis

Video subscription service reporting earnings

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SAN FRANCISCO -

Video subscription service Netflix posts third quarter earnings today, providing an idea how it is doing in the face of increasing competition. There's also the shift of its business to streaming from the traditional DVDs sent through the mail.

It also comes as Netflix is working to expand outside the U.S.

The quarter covers a traditionally slow season because summer's longer daylight hours and vacations distract people from watching movies and old television series. Netflix executives also expected the telecast of the Summer Olympics during late July and early August to discourage households from buying another entertainment package during that two-week period.

Netflix has said it could gain up to 1.8 million subscribers for its streaming video service. It had expected to lose up to 900,000 users of its DVD-by-mail rental service.

Analysts forecast earnings of 5 cents a share with revenue of $905 million.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

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