The online movie rental company, Netflix has posted profits in the first quarter with the increase in the revenue and high gross margins. The profit of almost $60.2 million, which is $1.11 per share, has been reported. The net profit has been increased by $32.3 million in comparison to the last year. The revenue of the company has surged by almost 46% to $718.6 million.

The gross margin of the company has increased to 39%, which is up by almost 2% from 37.8% last year. Overall, the subscribers of the company are 23.6 million, which is up by 69% in 2011. Netflix said that they provide extra revenues for its users.

Meanwhile, the company said that more money will be spent for widening the library of the content for the users.

The Netflix shares, Still, has been increased by more than 40% in 2011. According to Wedbush analyst, Michael Pachter, more investment will surely impact on the profits of the company’s.

Mr. Patcher said, "For the first time, they're talking about the streaming content costs growing dramatically, and now it's reflected in their guidance for the quarter”. He said that the company will be more clear and transparent about its investments.