Netflix beats estimates, but faces increased competition

With less money to spare for entertainment these days, many people are looking for low-cost ways to smile during hard times. What better way than to kick back in the comfort of your own home with some popcorn, cuddle up and view the latest DVD releases?

That's exactly what happened with online movie rental company Netflix (NFLX). And millions are joining in on the fun. The company has a whopping 10.3 million subscribers and its stock has shot up 50 percent this year already. After the closing bell Thursday, Netflix reported a first-quarter profit of 37 cents a share and revenue of $394.1 million, both beating expectations. Analysts polled by Thomson Reuters expected it to earn 31 cents per share on revenue of $391 million.