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Posted: Mon., Jan. 26, 2009, 3:14pm PT

Netflix posts spike in profits

Company climbs 45% in fourth quarter

Netflix

Netflix posted a 45% spike in fourth-quarter profit Monday, attesting to the appeal of its mail-delivered DVD service during the onset of the recession.

The company's subscriber base grew 27% during 2008 to reach 9.4 million. About 718,000 subscriptions have been added since the September quarter.

Profits reached nearly $23 million and revenue rose 19% in the quarter to $360 million.

The cost of acquiring a subscriber dropped 23% to $26.67.

Netflix now predicts its subscriber base will crack the 10 million mark by the end of the first quarter.

Shares dipped 29¢, or about 1%, to close at $30.15.

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