Netflix's envelope runneth over in third quarter

October 23, 2007 Netflix reported a better-than-expected quarter Monday and raised guidance for the rest of the year, causing its stock to soar as much as 18% in after-hours trading. Netflix said it ended the quarter with slightly more than 7 million subscribers, surpassing the company's most recent guidance of ending with 6.7 million-6.9 million subs. Subscriber acquisition costs also dropped, as Netflix relied more on keeping its service affordable to consumers than it did on marketing.

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