Netflix to double originals budget passes HBO in US Paid subscribers

, 2013, 2:14pm PDT Updated: Oct 21, 2013, 2:51pm PDT

Netflix to double originals budget, passes HBO in U.S. paid subscribers (Video)

Oct. 21 (Bloomberg) -- Bloomberg's Jon Erlichman breaks down Netflix's third-quarter earnings report. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

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Victor J. Blue

Shares of Netflix were up about 10 percent higher after the company reported strong third quarter results.

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Preeti Upadhyaya

Technology Reporter- Silicon Valley Business Journal

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Shares of Netflix rose nearly 10 percent after hours after it beat profit estimates and reported strong subscription results.
The Los Altos company added nearly 1.3 million streaming U.S. subscribers (on the high end of the company's guidance) and said that its original series "Orange is the New Black" and "House of Cards" contributed to the gains.
Netflix reported earnings of 54 cents a share, up 285 percent from a year ago. The company brought in revenue of $1.1 billion, up 21 percent year over year.
Analysts were expecting earnings of 49 cents a share on revenue of $1.1 billion, according to Yahoo Finance and Thomson Reuters.
In its letter to shareholders, the company said it expects to double its investment in original content in 2014.

Netflix passed up premium TV programming rival HBO in domestic paid subscribers for the first time, reporting 29.93 million customers. Netflix CEO Reed Hastings said his company was making progress toward matching HBO's 114 million global member count. Worldwide, Netflix counts 38.01 million paying customers.

For the fourth quarter, Netflix expects net income to come in between $29 million and $45 million, or between 47 cents and 73 cents a share. It expects to have between 32.7 million and 33.5 million total domestic streaming members in the