Streaming video giant Netflix, which has been hit by a spate of legal battles with copyright holders, has announced its latest quarterly results.
Netflix is the first major US media company to report earnings on Friday, as the company is looking to return to profitability.
The company reported its latest results for the quarter ended 30 June, which covers the period ending April 30, 2017.
Netflix had a strong quarter, with net revenue of $1.9 billion and a profit of $4.4 billion.
Revenue rose by 12 per cent to $1,834.4 million, driven by growth in its original programming, and digital platforms, including the number of subscribers and the number accessing the service.
Netflix also announced a deal to acquire online movie and TV rental services XBox and Amazon Prime Video.
Netflix’s share price rose 8 per cent and the stock was trading at $69.60.
In addition to its streaming content, Netflix is also building a “film library” of more than 150,000 titles.
The deal includes the acquisition of the titles from Universal Pictures and the acquisition by Netflix of the film rights to several movies, including The Hunger Games.
The film rights are currently owned by Universal, but Netflix is acquiring them for $400 million.
Netflix said that the movie rights are the “first of their kind in history”.
Netflix is expanding its distribution business.
It announced that it is adding a new feature to its app, called Netflix Original, which will give users the option to watch Netflix original movies through their own personal streaming devices.
Netflix has also been developing a new online service for its subscribers called Netflix Instant.
Netflix and Amazon have said that they plan to launch a new streaming service, called Amazon Prime, on May 1, 2021.
Netflix will be available in the US and Canada from May 1.
The news comes as Netflix faces an onslaught of copyright battles.
The streaming service’s main competitor, Netflix, has been battling with the studios and movie studios over the use of their films and TV shows for commercial purposes.
Netflix sued Warner Bros. and other studios over its films including Jumanji, X-Men: Apocalypse, Deadpool, and Doctor Strange.
The case is now before a US court, and Netflix said in January that it was prepared to “take any and all legal action” against the studios, if needed.
The battle with the movies studios has been particularly damaging to Netflix, as it has been unable to negotiate licensing deals with major movie studios.
Netflix chief content officer Ted Sarandos said in a recent earnings call that the streaming service had “significant leverage” with the movie studios and they were “very excited” to be working with Netflix.
“This is a very exciting time for Netflix,” Sarandes said.
“We have some amazing films on the way, and the new movie lineup is one of the best movies in the world.”
Netflix has been struggling with competition from Netflix Instant, a new service that will offer movies from major studios on its own service.
The service is being rolled out in several markets, including Australia and Canada, and is expected to hit a number of countries in the coming weeks.
Netflix Instant is expected, along with Amazon Prime Instant Video, to be the next major digital distribution platform for the streaming video service.