Netflix loses 800,000 US subscribers in tough 3Q

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  • Rivers17ncsu
    Amerson For Thorpe!
    • Mar 2010
    • 1246

    Netflix loses 800,000 US subscribers in tough 3Q

    Netflix's video subscription service lost 800,000 customers in the third quarter —the biggest exodus in its history— even as its earnings rose 65 percent.

    The losses were larger than management had previously warned. The unwelcome surprise, contained in financial results released Monday, was compounded by a forecast calling for millions of Netflix Inc.'s DVD-by-mail subscribers to cancel the service in reaction to dramatic price increase that took effect last month.

    The bad news bruised already battered stock as the shares plunged by more than 26 percent.

    Netflix lost its luster among consumers and investors 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, which is based in Los Gatos, California, ended September with 23.8 million U.S. subscribers, down about 800,000 from June. Netflix had predicted it would lose about 600,000 U.S. subscribers in a forecast released last month.

    Management expects to gain U.S. subscribers in the current quarter, although Netflix didn't set a specific target. But a substantial number of Netflix's customers are expected to choose between renting DVDs through the mail or streaming video over high-speed Internet connections instead of paying for both services.

    The biggest hit is expected on the DVD side, a service that Netflix has been de-emphasizing to save money on mailing costs as its spends more to license movies and TV shows for its Internet video library. The company expects its DVD subscribers to fall from 13.9 million as of Sept. 30 to as low as 10.3 million at the end of December.

    Netflix 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.

    The performance topped the average earnings estimate of 96 cents per share among analysts polled by FactSet.

    The company's revenue climbed 49 percent from the same last year to nearly $822 million — about $9 million above analyst estimates.

    Netflix shares shed $31.19, or more than 26 percent, to $87.35 in Monday's extended trading.


    "It's the revenge of the dicks that's nine cocks that cock nines"
  • wingsfan77
    Junior Member
    • Aug 2009
    • 3000

    #2
    I got rid of my DVD option but am going to keep watch instantly because I use it pretty much every day. I really only use the DVD part to get new releases so I can just Redbox those and save some money.

    Comment

    • Swarley
      A Special Kind of Cat
      • Jul 2010
      • 11213

      #3
      I dumped them. I just don't watch enough crap for it to be worth the money.

      Comment

      • MvP
        a member of vsn
        • Oct 2008
        • 8227

        #4
        The quick rise and "fall" of this company has been interesting to watch. Fall in quotations because I'm sure they'll stick around for a while, but still.

        Comment

        • Derrville
          Dallas has no coaching...
          • Jul 2009
          • 5321

          #5
          Axed the DVD part but kept the instant watch. Lots of good stuff on there, old school and new stuff. Watching the Wonder Years as we speak.

          Comment

          • Nucking Futs
            Word Life
            • Jul 2010
            • 1283

            #6
            They sent me an email a couple days ago apologizing about all the shit they've been doing/changing lately.

            Like most, I ditched the DVD part and kept my streaming.

            o TH3 N3RD o


            Comment

            • nflman2033
              George Brett of VSN
              • Apr 2009
              • 2393

              #7
              thinking about ditching DVD myself

              Comment

              • Maynard
                stupid ass titles
                • Feb 2009
                • 17876

                #8
                the streaming videos are the only thing worth while and that selection still sucks.
                i dont understand why anyone would pay for this shit when everything is available to DL for free

                Comment

                • Houston
                  Back home
                  • Oct 2008
                  • 21231

                  #9
                  All this stuff is online for free anyway.

                  Comment

                  • jms493
                    Junior Member
                    • Feb 2009
                    • 11248

                    #10
                    the net flix honeymoon is over.

                    Comment

                    • NAHSTE
                      Probably owns the site
                      • Feb 2009
                      • 22233

                      #11
                      I ditched DVDs when it was announced, and have probably used the streaming like three times this month. Probably gonna discontinues soon barring unforeseen events such as them landing a huge exclusive.

                      Comment

                      • Herm
                        Boomshakalaka
                        • Oct 2008
                        • 9314

                        #12
                        this reminded me i needed to cancel netflix as i havent really used it much in months.

                        Comment

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