- Text
NFLX bounces back as Netflix gains subscribers, DVDs not so much
(Credit:
Getty Images)
(CBS) - Netflix (NASDAQ: NFLX) released promising fourth-quarter numbers Wednesday.
After a series of fumbles in 2011, the video streaming services makes a comeback.
Netflix reported December saw 24.4 million subscribers in the U.S., up from 23.79 million in the third-quarter. That number is almost back at the 24.59 million in the second-quarter, before controversy caused customers to cancel service in droves.
Full coverage of Netflix at Tech Talk
The company was on an upward trajectory until changes to the pricing structure, to the tune of 59 percent. In protest, customers jumped ship and stock prices dropped.
Netflix in free fall, what does it mean for subscribers?
Netflix's saga: The dark side of creative destruction
Netflix socks subscribers with 59% price hike
Why is Netflix raising its prices?
News of fourth-quarter earnings also inspired investors. Shares climbed nearly 16 percent on Wednesday, closing at $95.04. Netflix stocks continue to climb Thursday morning, hovering around $118 per share.
Netflix continues to lose DVD mail-in subscribers, however. The company is phasing out the service due to evolving technology and the move toward a disc-less future.
"We expect DVD subscribers to decline every quarter forever," Netflix chief executive officer Reed Hastings said during a conference call Wednesday.
The move toward everything in the cloud has been at the heart of Netflix's issues.
Analysts have speculated that Netflix faces steep price hikes for content licensing for streaming video. According to a CNN source, "Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012."
While there is plenty of completion in the video streaming market, Netflix has a far reach that is convenient for customers. The service is available online, through streaming players, mobile devices and video game consoles.
- Simpsons Arcade finally makes it to Xbox 360, PS3
- iPhone 5 will reportedly launch in the fall
- Apple to build largest private solar farm in U.S.
- PS Vita worth the money? We go hands-on
- "Googlighting" video takes a hit at Google
- Whitney Houston film not pulled from Netflix
- iPad mini in testing stage, says research firm
- Apple iPhone 5 rumors, reports say June release
- Shocking Stats on Texting While Driving
- Apple MacBook Pro getting makeover, says new report
- Facebook required for Spotify account, here's a trick
- Apple iPad getting Microsoft Office Suite? Sources say coming soon
- Apple iPad 3 rumors resurface, sources say March release
- Foxconn says it will raise salaries
- What is Pinterest?
- How to get the Diablo III beta test
- Microsoft redesigns Windows logo
- 2 charged in death of Ala girl forced to run
- 2 charged in death of Ala girl forced to run
- India gov't asks top court to keep gay sex illegal
- China urges Iran to cooperate with UN inspectors
on Facebook
- Six decades of Oscar fashion
- Christie: Buffett should "write a check and shut up"
- "Biggest Loser" contestants reportedly threaten to quit
- Is world's shortest man this 22-inch-tall Nepalese 72-year-old?
on CBS News
