Netflix: 2 Billion Hours of Streaming In Q4 2011

Netflix ($NFLX) went babbaloo today.


Up Up and Away


Now, I was out for much of the day, so my first question was : WHY?

Well, Netflix put out this press release at 8am, detailing their members’ abundant use of the streaming service in 2011’s fourth quarter:

“Netflix Inc. (Nasdaq: NFLXNews) said today its members instantly watched more than two billion hours of TV shows and movies streaming from Netflix in the fourth quarter of 2011.  “

That 2 billion hours is spread over 20mm streaming customers, and when you break it down simply, you get a pretty impressive average of 100 hours per customer for the quarter.  That’s a little more than an hour a day of streaming NFLX.   Why does this matter?    Well, it means that NFLX customers are using the service a lot – perhaps enough to not want to cancel it.  Of course, there are all sorts of caveats:  we don’t know if 20% of customers might have accounted for 75% of the usage, blah blah blah, etc.  If anyone comes across more granular data from Netflix, please do forward it on to me.

There was also a story out that Piper Jaffray tech analyst Gene Munster mentioned that $NFLX might be a good takeover target for $YHOO.  Gene is no fool, but I don’t understand that one at all.  Verizon’s name has  also been floated as a potential suitor for NFLX, but $VZ made some comments late in the day that they had no interest buying a company to acquire a streaming business.

Whatever the reason – or confluence of reasons – $NFLX had a banner day today.  What an intraday chart (above) – not gappy and jumpy  – just a steady, merciless march.



disclosure: no positions in $NFLX $YHOO $VZ

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