Today, Netflix reported its financial results for the fourth quarter of 2011, which ended on December 31. The company announced a revenue of $876 million, up 47% year-over-year, and significantly higher than analyst expectations, which were in the mid-$850 million's. 

Netflix also revealed that it gained 220,000 new streaming subscribers in the holiday quarter, but still much less than the 800,000 it lost in the previous quarter. The company now has 21.67 million streaming subscribers in the United States and 24.4 million DVD rental  subscribers. In addition, 1.9 million international customers are signed up with Netflix, 380,000 of whom were added in the past three months. 

We are encouraged by the strength in acquisition that we are seeing, coupled with continued improvements in retention among our domestic streaming members. For Q1 to date, our domestic net additions for streaming are tracking close to our net additions in Q1 2010 of 1.7 million net additions. Given this trend, we are comfortable with our ability to continue to expand our domestic streaming contribution margin.