Annualized domestic customer growth stopped at 8.2%, while international accounts increased by 39%. You could argue that Netflix broke through the 100 million global benchmark this quarter, but only if you also include 3.9 million subscribers to the red-envelope DVD service. Netflix scored 102.7 million total subscribers on that basis, or a 19% year-over-year increase. Subscriber additions came in just below guidance. Considering that the final tally of streaming subscribers fell within 0.3% of the official forecast, that miss looked more like a rounding error. This view gains support when you consider that Netflix met its revenue targets and exceeded the given profit goals, also by small margins. The reporting structure was tweaked to include guidance figures for total revenue. On that note, CFO David Wells encouraged investors to focus more on top-line revenue and companywide operating margin. Subscriber numbers will still be provided, but Netflix is growing into a more traditional reporting mold here. Free cash flow came in negative again, and the company plans to go back to the bond market in the second quarter.
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