Netflix beats estimates, is now bigger than HBO

(UPI) -- Netflix announced its third quarter numbers Monday, and revealed it added 1.3 million new domestic subscribers, bringing it to a total 31.1 million U.S. subscribers and pushing ahead of premium cable channel HBO.

The company beat expectations with $1.1 billion in revenue and earnings per share of $0.52.

After a troubled 2011 that saw Netflix spin off its DVD business and raise prices on streaming subscribers, the company bounced back in 2012 and has been steadily adding new subscribers since.

Part of the subscription surge is due to more original programming, including Emmy-winning House of Cards, the revival of canceled cult comedy Arrested Development and the critically-acclaimed Orange is the New Black.

It is rumored that Netflix has an upcoming deal with Marvel for an original series. Last week, the company announced that it would start adding DVD-style extra features including outtakes and commentary beginning with its original programs and then expanding to their back catalog if viewers respond well. In addition, the company is seeking partnerships with cable providers to upgrade set-top boxes to support the streaming service.

Last quarter Netflix recorded $1.07 billion in revenue and added 630,000 subscribers. The company's free cash declined about 45 percent from last quarter, but was up substantially year over year.