LOS GATOS (CBS/AP) – Netflix’s move to compete against traditional cable-TV channels with original programming is pulling in more subscribers to its internet video service and winning back investors who doubted the company’s ability to develop distinctive entertainment.
The skepticism dissipated Monday with the release of Netflix’s financial results for the opening three months of the year.
The first-quarter numbers showed Netflix Inc. added 2 million U.S. subscribers from January through March – hitting the top end of the target set by the company’s management. The growth left Netflix with 29.2 million U.S. subscribers to an $8-per-month service that streams movie and TV shows to Internet-connected devices.
Those first-quarter gains, coupled with signs that Netflix’s profit margins are widening, delighted investors. The company’s stock soared $42.54, or 24 percent, to $216.91 after the results came out. If the stock rallies similarly on Tuesday, it will mark the first time Netflix’s…
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