Netflix posted an impressively strong quarter.  It signed up more than 2 million subscribers in the quarter that just ended, surpassing even its own predictions.  Netflix reported having 29.17 million paid subscribers in the US, which is more than HBO’s reported 28.7 million, at the end of 2012.

Pundits suggest that Netflix’s success is brought on by the availability of original content such as House of Cards and Lillyhammer.  Netflix CEO Reed Hastings stated that if its original content proves to be a success in the coming month, it will be adding more to its offerings.

“In the next two years, it’s a modest increase,” he said in a conference call with analysts. “If that were wildly successful for us, as the first three shows have been, we could continue to expand to 20 or north, but that would be dependent on what happens the rest of this year.”

Aside from its impressive quarter, Netflix announced a new subscription plan that could draw in even more users.  For $11.99, Netflix subscribers will be able to stream content to four devices simultaneously.  So if you and your family cannot agree on what to watch, just get your own device and watch your favorite show without bickering with the other members of the family.  Though this could resolve household conflicts, I’m afraid that this could also promote less family time spent with each other.

Still, you can’t deny the fact that Netflix has been doing well despite its 2011 pricing kerfuffle.  So how did Netflix manage to survive, and now, surpass HBO?

Three Things Netflix did to survive

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Adapt

Netflix started with a DVD-by-mail service, which brought on the demise of Blockbuster.  Netflix bought DVDs in retail stores, which by law, allowed them to be rented out.  People no longer needed to go to a physical store to rent DVDs as the DVDs could be delivered to their homes.

Transform

From just delivering DVDs, Netflix later entered the content streaming service.  This allowed subscribers to watch their favorite shows on their computers, and now on mobile devices, instead of just on their TVs.

Innovate

Content streaming is a huge investment, and it’s one that’s paid off for consumers, no longer dictated by program schedules.  Streaming content from partners is one thing, streaming content you actually created is another.  This seems to be driving Netflix’s success.

And with Microsoft Silverlight and Flash on a downward spiral, Netflix is transitioning to HTML5 for content delivery.  Though it still has a long way to go, at least Netflix is proving that it can stay in the game, no matter what obstacles it faces.