Good news for Netflix subscribers who may have come to rely on the service's video offerings: The company is not about to shrivel up and die. Despite competition and a rocky end to 2011, Netflix added more than 600,000 new subscribers in the fourth quarter, according to news reports.

When Netflix effectively hiked its prices by splitting its streaming video service from its snail-mail disc-rental service last year (the short-lived Qwikster), customers abandoned Netflix in droves. More than 800,000 U.S. customers left the service in the third quarter of 2011.

The company swiftly abandoned those plans, keeping both services in-house but charging separately for them. Netflix monthly membership costs are now $8 for streaming video and $8 for DVDs by mail (renting Blu-ray discs costs an additional $2 per month).

And as Netflix looks to get more of its mail-rental customers to switch over to streaming services, it has been paying big money for TV shows and movies specifically for its streaming audience, according to a report by Reuters. When it comes to offering TV shows that are currently in season, though, Netflix is not bidding on that coveted content, according to Engadget.

There are other inexpensive entertainment options out there—from DVD rental kiosks to streaming media websites to set-top DVRs that record free HDTV programming. Check out how to cut your bills for money-saving tips.

Previously:
Customers leave Netflix after price hike; pay-TV subscriptions also down
New Netflix pricing: No thanks

Netflix shares surge as customer base grows [Reuters]
Netflix Q4 results: 220k new streaming-only customers, beats earnings estimates [Engadget]