Netflix 4Q 2011 earnings better than expected

Netflix had some good news to report today. The streaming TV show and movie company reported its financial numbers for the fourth quarter of 2011 with revenue numbers of $876 million, 47 percent higher than the same period a year ago. Net income came in at $40.7 million, which is slightly lower than the $47.1 million Netflix made at the same time a year ago.

More importantly, Netflix is once again gaining in subscribers after losing 800,000 members in the US in the last quarter. While the number of its DVD mail order rental subscribers went down by 2.7 million in the fourth quarter, the company gained 220,000 US streaming subscribers. It also added 1.86 million streaming members from its new territories in Latin America. Netflix launched in the UK and Ireland in early January, outside its fourth quarter 2011 financial reporting timeline.

Shares of Netflix's stock went soaring in after hours trading today on the earnings news, going as high as 15 percent.

In their letter to shareholders, Netflix executives once again confirmed that their streaming movie and TV show agreement with the Starz cable TV network would end on February 29. It added:

While our 2012 domestic streaming content commitments are already substantially in place, that doesn’t mean our offering will be static in the coming months. The relationships we’ve established with all major producers of film and TV in the U.S., including multiple output arrangements, ensure a steady flow of new titles to the service.
 

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I do not understand why is Netflix the total blame for not having a bunch of movies or TV Shows for streaming? Blame the greedy Movie/TV studios wanting for more money, heck I am happy the loss of Starz there movie streaming quality was **** on Netflix and now Netflix can make deals with companies that Starz was getting movies form. Sure it sucks we might not get Starz TV Series like Spartacus or Boss but I am sure there are other ways to get them on Netflix. What I find enjoyable on Netflix are the many IFC indie movies you can find, sure I enjoy Hollywood movies to but lately what movies they have made that is worth seeing or even seeing in theaters? All they ever make now are just remakes or sequels to a 30 year old some movie.

I hope Reed Hasting learns a lesson about what happened last year and takes his head out of his ass and starts negotiating with the studios.

techguy77 said,
Anyone know when The Walking Dead Season 2 is coming to Netflix? I just finished watching Season I.

Sigh, The Walking Dead Season 2 is not even over yet so don't expect until maybe summer and I just want to say why do people expect TV series to be added right away before it is done? Netflix does not work that way only HULU Plus and VUDU does that.

When you see movie rentals on average of $4.99 a PIECE, and the Netflix streaming has got to be the biggest no brainer going. Especially if you have an XBOX. Only a matter of time before they stream everything I would hope, but I have so much catching up to do on quality documentaries and stuff that I could give a crap about what they don't have.

Enron said,
Yeah I never understood why someone would rent a movie for 24 hours for $5.

Same reason people pay 9.50-11.50 to watch it for 2.5 hours in a theater

Enron said,
Yeah I never understood why someone would rent a movie for 24 hours for $5.

How long do you need to watch a movie? Do you regularly watch them in 5 minute chunks over the course of 6 months or something?

You get 24 hours to finish the movie after you start watching it... I mean they usually aren't 24 hours long...

Frazell Thomas said,

How long do you need to watch a movie? Do you regularly watch them in 5 minute chunks over the course of 6 months or something?

You get 24 hours to finish the movie after you start watching it... I mean they usually aren't 24 hours long...

Well some preteen girls might be like OMG lets watch it again and again!

But yeah, not a good value for the money.

rjones42455 said,

Same reason people pay 9.50-11.50 to watch it for 2.5 hours in a theater

Well some people enjoy sitting in theaters like the old days to watch some of us moved on with technology. I sort of miss those days myself but the prices to see a movie in a theater or even getting a popcorn or soda is ridiculous, it is like eating food at some theme park. Not only that what movies are even worth wasting money on to even bother going to see in a theater? Even 3D phase is annoying for me.

Frazell Thomas said,

How long do you need to watch a movie? Do you regularly watch them in 5 minute chunks over the course of 6 months or something?

You get 24 hours to finish the movie after you start watching it... I mean they usually aren't 24 hours long...

That is true because I do not watch the same movie maybe in a few months but if you want others to watch with you for a later time renting a movie for 24 hours for $5 is not really worth it.

Enron said,

Well some preteen girls might be like OMG lets watch it again and again!

But yeah, not a good value for the money.

I don't understand. If you are buying a movie to watch with your kids who love to hit replay until your eyes bleed... Why would you not just buy the DVD/Blu-Ray. Obviously those allow you unlimited replays.

I don't see it as a bad value. I rarely watch movies twice as I see no logical point for doing so. Streaming it for a few bucks is cheaper than a theater and gives me the same benefit as a service like NetFlix without having to wait 5 years for it to reach their streaming.

But I guess the world is a different if you have kids who love replays.