I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 118th edition of the VideoNuze Report podcast, for Jan. 27, 2012. In this week's podcast we discuss Netflix's Q4 '11 results, which were released this past Wed. afternoon.

The good news is that the results showed some glimmers of improvement in Netflix's business, but as I explained yesterday's post, net subscribers continued to be adversely affected by last summer's Qwikster and price increase decisions. The group showing the most attrition is the "hybrid" DVD/streaming U.S. subscribers who saw their rates increase by up to 60%. Colin and I dig into why this group is in fact still so vital to Netflix's success, and the risks posed by the company's strategy of pursuing streaming all out.

Colin also shares recent research TDG has done indicating that for those Netflix streaming subscribers retaining the service, satisfaction is running very high. That, combined with Netflix's own announcement that 2 billion hours of streaming content were consumed in Q4 '11, are encouraging indicators that the streaming service is resonating. Still, the big looming question for 2012 is how robust net U.S. subscriber growth will be. Listen in to learn more!

Click here to listen to the podcast (22 minutes, 31 seconds)



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