Shares of online video renter Netflix jumped 13 percent in after-hourstrading Monday after the company reported earnings of $15.7 million in itsthird quarter, up 23 percent from the $12.8 million it reported during thesame period a year ago. The rise was attributed to the company's decision tolower prices on its most popular subscription plans by $1 per month. Thetactic brought 286,000 new customers into Netflix's fold, bringing its totalto 7.03 million subscribers, compared to 5.7 million at the end of the thirdquarter of 2006. The figure is nearly twice the number reported byBlockbuster, which said in June that it had signed up 3.6 million onlinesubscribers. In a statement, Netflix CEO Reed Hastings said, "Going forwardwe will remain focused on making our core service even better and growingour online DVD rental business, while continuing to invest in our internetdelivery initiatives."
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