Netflix strategy focuses on subscriptions

July 25, 2008 Los Gatos, Calif.-based Netflix reported a better- than-expected second-quarter profit, possibly easing some concerns that higher costs for its digital expansion could drag down financials. Netflix added 168,000 net new subscribers in the latest quarter to boost its overall user base to 8.4 million. Wedbush Morgan analyst Michael Pachter, though, predicted that "Netflix is positioned for dramatic (profit) growth in 2008 and 2009 as streaming adoption increases."

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