Posted By RichC on October 24, 2011
The loss of subscribers was not a surprise to those angry with the boneheaded decisions from Netflix management (2) … but I think even those who “modified” their plans are surprised at the shear numbers who left in the 3rd quarter – 810,000 subscribers! Ouch … a painful loss after hours Monday for those stock owners who continued to hold shares.
Netflix Inc. said it lost roughly 810,000 subscribers in its third-quarter and forecast fourth-quarter earnings below expectations following an exodus of users unhappy with a subscription pricing change in the summer.
The movie-rental company also projected that it will begin losing money for a few quarters starting in the first period, due to costs associated with an expansion in the United Kingdom and Ireland.
Netflix said it ended the quarter with nearly 23.8 million U.S. subscribers, falling short of its own expectations of 24 million. The poor results spooked investors and led to a sell-off that chopped more than 27% off the share price, to $86.30 in after-hours trades.