• by Wayne Friedman , July 21, 2010

Rocketing financial numbers from its growing subscriber base helped lift Netflix's net income in the second quarter.

Net income grew 34% to $43.5 million in the second quarter for the now growing digital distribution entertainment company. Revenue in the second quarter was also up substantially -- 27% -- to $519.8 million versus the second-quarter 2009. Netflix's revenue was also 5% higher than the $493.7 million in the first quarter.

Much of this came from booming subscriber growth -- now at 15 million, up 42% from 10,599,000 total subscribers at the end of the second quarter of 2009. Netflix subscribers have increased 7% from 13,967,000 subscribers at the end of 1Q 2010.

Reed Hastings, CEO of Netflix, stated: "Consumers are clearly enthralled by our offering of unlimited movies and TV shows streamed over the Internet."

The company expects positive news in the coming reporting periods.

Net income is projected to hit between $33 million and $40 million in the third quarter, with the number of subscribers rising 16.3 million to 16.7 million. Revenue is expected to get to $546 million to $554 million.

The fourth quarter should see subscribers reaching the 17.7 million to 18.5 million region, with revenue of $580 million to $596 million, and net income of $32 million to $40 million.

Netflix derives a large part of its customer base from ongoing monthly subscription. For $8.99 a month, Netflix members can watch unlimited TV episodes and movies streamed to their TVs, computers and other devices, such as Microsoft's Xbox 360, Sony's PS3, TiVo DVRs, and Apple's iPad tablet.