According to their newly revealed Q4 report, Netflix bounced back during the last part of fiscal year 2011. It still doesn’t make up for the 800k subscribers that they lost due to (among other things) a proposed, cancelled spinoff (Quikster) and a price hike for streaming and disc rental services. The red company’s woes from last year included a ton of bad news in regards to content deals: Starz declined to renew their deal to lend their content as part of Netflix Streaming and Warner Bros. have increased the time between initial disc retail release and when Netflix can start renting it to customers. All this while trying to break into the UK and Irish markets. Sucks to be Netflix right about now.
In spite of all this, last quarter won the media company 220K new streaming customers and made a tidy $52M profit. The company has already sent out warnings that 2012 will be a rough year due to its campaign in the UK and the extra expenditures necessary to win new customers and provide quality service. It’s going to be a year that will make or break the company.
Source: Engadget
