According to financial information published yesterday, the US video streaming giant indicated that it is returning to growth in the US after a disastrous rebranding exercise and price hike led to the desertion of 1m domestic subscribers last year.
In his quarterly letter to shareholders, Netflix chief executive Reed Hastings said that total US subscribers to the firm's DVD and streaming service rose to 24.4m in the final quarter of 2011, up 25% year-on-year and 600,000 on the previous quarter.
The company's quarterly revenue grew to $876m (£558m), up from $596m in the same period in 2010, although net income slipped from $47.1m to $40.7m.
Netflix launched in the UK and Ireland this month, taking on Amazon's LoveFilm and Sky Movies.
In his letter, Hastings said that the launch has been "very successful" and claimed that the firm is seeing faster subscriber growth here than for its Canada launch.
"Our UK and Ireland launch at the beginning of the month was very successful, and we're seeing faster member growth than we did when we launched Canada," he said.
"As our membership in the UK and Ireland grows, we'll be able to invest more and more in content. We have a great selection of new films from Lionsgate and others, and will have on our service such highly-anticipated films as Hunger Games and The Hobbit, in addition to catalogue movies from five of the six major studios.
"On the TV side, we have current Hollywood TV from the major networks and three key local channels. In the UK and Ireland we launched with our best Facebook implementation to date.
Outlining Netflix's competitors, Hastings pointed to Amazon's LoveFilm, which recently topped 2m subscribers, but also acknowledged the threat of BBC iPlayer, which offers catch-up on all the BBC's channels and is funded by the licence fee.
However, Hastings feels that the firm's "primary long-term competition" will come from Sky Go, the multi-platform service launched by satellite pay-TV giant Sky last year.
Sky Go unified the Sky Player and Sky Mobile TV services, offering subscribers live and on-demand access to various channels, including Sky Sports, Sky News and Sky Movies, on tablets, PCs and smartphones.
"Just as in the US where our primary long-term competition will likely be TV Everywhere, in the UK our long-term competition will likely be Sky Go offering Sky Movies and Sky Atlantic on-demand. (Sky Atlantic is mostly HBO Originals content, and Sky Movies is one channel with the Pay One movie output from all six major US movie studios)," said Hastings.
"We believe we will compete very effectively against Sky Go, given our advantages of being an unbundled low-priced offering with broad content that is purely on-demand, and personalised."
Netflix could be further boosted by a UK Competition Commission investigation into Sky's control over movie rights in the UK, after the regulator said last year that the satellite operator was hindering fair competition.
However, one area where Netflix is unlikely to challenge Sky is Premier League football, after one of the firm's senior executives ruled out bidding for the rights when they next become available.
> Netflix: 'Exclusive movies are not our priority'