Netflix Sees 2006 Pretax Profit of $50 Million
Netflix Inc., the largest mail-order movie-rental service, forecast 2006 pretax profit of $50 million as subscribers rise to 5 million.
The company, which currently has 3.2 million subscribers, expects that number to rise to 20 million in the next five to seven years, Chief Executive Reed Hastings said.
The Los Gatos, Calif.-based company is unlikely to raise prices for its monthly rental packages and may test lower pricing, Chief Marketing Officer Leslie Kilgore said.
Netflix shares rose $1.50, or 6.6%, to $24.09.
From Bloomberg News
* Bob Guccione Jr., founder of Spin and Gear magazines, and a group of investors agreed to buy Burbank-based Walt Disney Co.’s Discover science magazine for an undisclosed price.
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