Netflix rolls past $2 billion in annual web sales

Netflix keeps on churning out the financial milestones. This year’s accomplishment: generating more than $2 billion in e-commerce sales.

For the fiscal year ended Dec. 31, 2010, Netflix reported:

•Total revenue increased by about 29.4% to $2.16 billion from $1.67 billion in 2009.
•Net income was $160.9 million, a 38.8% increase from net income of $115.9 million last year.
•Subscribers increased by 63% to 20.01 million from 12.27 million.

More than one-third—over 2.5 million—of Netflix’s 7.7 million new subscribers are signing up for the pure streaming plan and not receiving discs in the mail, the company says, “We expect that percentage to grow over time. The balance of new subscribers primarily takes our $9.99 1-DVD combination plan. Very few of our existing subscribers are downgrading to the pure streaming plan,” says Netflix.

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Netflix Signs Streaming Deal for ABC, Disney

Netflix Inc. inked a licensing deal with Walt Disney Co. that allows for online video streaming of ABC television network and the Disney and ABC Family channels.

Netflix has been expanding its streaming offerings, signing deals with content providers such as NBC Universal, and has said its members are watching more content streamed over the Internet than on discs delivered by mail. It recently launched its first streaming-only subscription plan in the U.S., continuing its embrace of online streaming as the rise of digital film distribution continues to shake up the industry.

Under the agreement, relevant programming will be available on Netflix no earlier than 15 days after the initial telecast. Disney Channel and ABC 4Family movies such as "High School Musical" will also be available.

Netflix has consistently reported improved profit as it attracts subscribers and expands its library to compete with DVD kiosks and new digital players. In October, it reported third-quarter earnings rose more than it expected. Its stock has more than tripled this year.

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Netflix Unveils Streaming-Only Plan, Lifts Prices

Netflix Inc. launched its first Internet-only subscription plan in the U.S. and raised prices for DVD-by-mail plans, continuing its shift from a DVD rental business to an online video service.

On Wednesday's earnings call, Netflix CEO Reed Hastings said the company is testing a streaming-only option for its U.S. subscription service, talked about international expansion, and said he doesn't see any evidence that his nearly 17 million customers are choosing Netflix instead of cable. AllThingsD's Peter Kafka joins Digits to discuss.

The company, which says its customers now use its Web-streaming service more than its by-mail rentals, will charge $7.99 a month for customers that only want to watch films and TV shows delivered online.

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