Netflix Shares Nose-Dive

Subscriber loss worse than expected

Monday, Oct 24, 2011  |  Updated 3:22 PM PDT
View Comments (
)
|
Email
|
Print
 Netflix Shares Nose-Dive

Price changes and weird business moves cause Netflix to suffer customer loss.

advertisement

Netflix's third-quarter earnings rose 65 percent even though the video subscription service suffered the biggest customer losses in its history.

The financial results, released on Monday, covered an abysmal stretch that saw Netflix Inc. lose its luster among consumers and investors. Netflix triggered the backlash by raising prices as much as 60 percent in the U.S. and bungling an attempt to spin off its DVD-by-mail rental service.

The company ended September with 23.8 million U.S. subscribers, down about 800,000 from June. Management expects to gain U.S. subscribers in the current quarter, although Netflix didn't set aspecific target.

The company earned $62.5 million, or $1.16, per share, in the third quarter. That compared to income of $38 million, or 70 cents per share, at the same time last year.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Bay Area Proud
Bay Area Proud is NBC Bay... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out