Netflix Q4 2011 Revenue $19 Million Above Analyst Expectations

From DailyTech: Despite the turbulent year much of 2011 turned out to be for Netflix, the video streaming giant reported impressive fourth-quarter earnings with a nearly 50 percent revenue increase since Q4 2010.

In the three months ended December 2011, Netflix posted a revenue of $876 million, which was a 47 percent increase from Q4 2010, and was $19 million higher than analyst predictions. The company made $40.7 million, or 73 cents per share compared to $47.1 million, or 87 cents per share in Q4 2010.

Netflix finished 2011 with 24.4 million subscribers, which was an increase from 23.8 million at the end of September. There was a total of 21.7 million streaming subscribers in the U.S. ending 2011.

The DVD-by-mail aspect of Netflix is on a constant decline, with only 11.2 million DVD subscriptions in December 2011. About 8.4 million customers subscribe to both video streaming and DVD-by-mail. Netflix predicts that the 11.2 million number of DVD subscribers from December will drop to 9.7 million in March 2012.

"We expect DVD subscribers to decline every quarter forever," said Reed Hastings, Netflix CEO.

For 2012, Netflix expects to produce an annual loss for the first time in 10 years. It predicts a Q1 2012 loss of 16 cents to 49 cents per share. Analysts expect a first-quarter loss of 29 cents per share.

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