Netflix (NASDAQ:NFLX) Subsriber Guidance Crucial for 2011 Share Performance

Netflix (NASDAQ:NFLX) flew high in 2010, with the share price of the company more that tripling during that time. Expectations are Netflix will have to guide for about 28 million subsribers by the end of 2011 to satisfy shareholders.

when Netflix reports Wednesday, expectations are they'll report more than 19 million subscribers by the end of the fourth quarter.

If they do, that means they'll have added an additional 2.5 million subscribers in a quarter for the first time in the history of the company.

Guidance from Netflix in October said they expected to add up to 2.7 million new subscribers for the 3-month period ending in December. Assuming that target is reached, Netflix would have added 7.4 million new subscribers in 2010, a 60 percent gain.

Netflix is gravitating toward a streaming-only service, which costs $8 a month at this time. The savings would be enormous and also more able to instantaneously gratify consumers, which could cut costs while generating more revenue once it's more widely discovered and accepted. Netflix closed Monday at $183.96, gaining $1.87, or 1.03 percent.