Washington, D.C. (January 5,
2012) -- Netflix's stock jumped
11 percent yesterday after it revealed that its subscribers
watched more than two billion hours of programming via Internet
streaming in the fourth quarter.
The company did not say how the number compared to previous
quarters. But Wall Street analysts had estimated that the number
would only top one billion. The better-than-expected
streaming total helped trigger the stock rise, but reports that
Netflix could be a takeover candidate could have also fueled the
increase.
Netflix has seen its stock drop from more than $300 in mid-July
to under $80 before yesterday's hike. The lower price has fueled
rumors that Yahoo may now attempt to buy the online video rental
service. Netflix has lost nearly one million subscribers over
the last several months due to a price increase and other
company bungles, but its growing streaming audience makes it an
attractive target.
Yahoo recently hired a new CEO, which could make life
interesting for embattled Netflix CEO Reed Hastings if his
company was taken over by the online portal.
Amazon, which is rapidly building its own Video on Demand
service, could also be interested in acquiring Netflix.
Netflix, however, still must find a way to stop angry
subscribers from leaving the service. The company has been the
target of numerous complaints since it decided to split its
streaming and disc rental services into two, effectively
doubling the price for consumers who use both.
While it estimates that its streaming audience exceeded 23
million worldwide by the end of December, it could lose as many
as three million more disc renters.
