Netflix's fourth-quarter performance boosted as its DVD-by-mail service exceeded 12 million subscribers, and management assured an even brighter 2010. The company grabbed investors' applaud, lifting the company's shares by more than 14% in after-hours trading Wednesday.

Netflix reported that it added 1.1 million customers during the quarter - the most in any three-month period in its history. The company had to wait for four years to witness its first 1 million subscribers after launching its rental service in 1999.

The company projects an additional 1.2 million to 1.5 million customers in its first quarter. Netflix forecast financial results for the first quarter and the full year that exceeded analysts' current estimates.

The company reports its earning to be $30.9 million, or 56 cents per share, in its latest quarter, a 36% increase from $22.7 million, or 38 cents per share, a year earlier, surpassing the average estimation of 45 cents per share of analysts.

"The biggest installed base is laptops. They are pretty ubiquitous", Hastings said when asked what user population the new service targets. And video game consoles, if one is talking about the most advanced countries, he added.

The Los Gatos, California, based company witnessed a massive boost in the fourth quarter from Sony's PlayStation 3 video game console, which flaunted the company's roughly 17,000 streaming titles.

The company, already under a deal with Microsoft's Xbox 360, in the spring will proceed to link up with Nintendo's Wii console.