Netflix Delivers Blockbuster Earnings

The demand for entertainment isn't dead just because consumers want to save money. Just look at Netflix ( NFLX).

The company saw a 22% increase in second-quarter earnings, as it gains market share in the movie rental business.

During the quarter, the company earned $32.4 million, or 56 cents a share, compared with $26.6 million, or 43 cents, in the year-ago period.

Revenues jumped 21% to $408.5 million from $337.6 million last year, as consumers look to inexpensive ways to entertain themselves at home.

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Netflix ended the second quarter with about 10.6 million total subscribers, a 26% increase from last year.

And the company isn't stopping with movie rentals. Earlier in the month, Netflix said it plans to stream movies to Sony's ( SNE) Bravia high-definition, Internet-connected TVs starting this fall. The move marks Netflix's goal to gain market share in Internet streaming.

Looking ahead, management expects third-quarter earnings in the range of 39 cents to 47 cents a share, and full-year profit between $1.65 and $1.82 a share.

The company has been doing so well, in fact that there have been rumors circulating that Amazon.com ( AMZN) or Microsoft ( MSFT) could be interested in acquiring the company. Analysts, however, say this is doubtful.

Shares of the company jumped 3% to $46.46 in late day trading.

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