Netflix Inc.’s (NASDAQ: NFLX) subscriber revenues have surpassed those of HBO's, according to Reed Hastings, CEO of the online content-streaming company.
“Minor milestone: last quarter we passed HBO is subscriber revenue ($1.146B vs $1.141B),” for the three months that ended June 30, Hastings said on his Facebook page, adding: “They still kick our ass in profits and Emmy's, but we are making progress. HBO rocks, and we are honored to be in the same league.”
Netflix, which started out as a DVD-by-mail service has seen its streaming subscription grow in popularity. Rival HBO is owned by Time Warner Inc. (NYSE: TWX).
Netflix’s Internet-driven model is growing faster than HBO’s cable pay-TV subscriptions, Mashable reported Wednesday. For the June quarter, Netflix reported 38.2 million customers in the U.S. and 13.8 million international customers for the monthly streaming subscription service. Netflix is available in over 40 countries.
HBO doesn’t reveal subscriber numbers but Mashable reported, citing SNL Kagan estimates, that the channel has 28.7 million customers in the U.S.
Netflix reported operating income of $130 million for the June quarter, including the DVD service, compared to HBO's $548 million. Hastings is looking to add more original content, while HBO is seeking to increase its own base by foraying into a Netflix-like service for customers interested in subscribing to shows via the Internet.
Netflix’s "House of Cards" and "Orange Is the New Black" shows have garnered several nominations for the 66th Emmy Awards, but lag HBO, which has more than three times as many nominations for its shows, including "Game Of Thrones," "True Detective" and "Breaking Bad."