Netflix reported growth of 1.7 million new members in the first quarter 2010 to a total of 14 million subscribers. They also experienced decreased customer turnover and lower subscriber acquisition costs due to increases in its streaming service.
Netflix is lowering the cost of adding new subscribers through positive word of mouth, availability across multiple devices and several recently struck deals with major studios that have helped increase its catalog of streaming titles. The company is also offering one-time discounts to subscribers who use the company’s streaming service, in an effort to increase its lead over competitors.
Meanwhile, Blockbuster is losing customers to Netflix and Redbox "at an unprecedented rate."
Netflix Q1 2010 Financial Report - http://files.shareholder.com/d....._final.pdf