Netflix beats Street but loses 800,000 subscribers in Q3; DVD decline to continue

By on Oct 24, 2011 at 5:30 PM
Entertainment October 24, 2011

Shares of Netflix stock plummeted more than 27% in after-hours trading as the company revealed it lost more than 800,000 customers in the third quarter. Netflix now serves 23.8 million total customers and it reported third-quarter revenue of $822 million, beating estimates of $812 million. Earnings worked out to $1.16 per share, which also beat Wall Street’s consensus of $0.96. “While we dramatically improved our $7.99 unlimited streaming service by embracing new platforms, simplifying user-interface, and more than doubling domestic spending on streaming content over 2010, we greatly upset many domestic Netflix members with our significant DVD-related pricing changes, and to a lesser degree, with the proposed-and-now-cancelled rebranding of our DVD service,” Netflix said in a letter to shareholders Monday. Netflix expects DVD shipments to decline sharply during the fourth quarter, a continuation of the company’s earlier changes, but it expects growth in weekly gross additions compared to the December quarter last year. The company said it expects global consolidated income to fall between $19 million and $37 million during the fourth quarter and EPS is expected to land between $0.36 and $0.70.

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11 Comments

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  • http://twitter.com/GRZLA Grizzly Atoms

    I enjoyed Netflix when I first got it, but it gets stale fast. It has a good selection but in terms of streaming, new content comes very rarely. I also dabbled in Hulu Plus. I liked the newer episodes of TV, but their service was always laggy and filled with ads. Either the movie or television studios need to wake up and embrace streaming so that it can be more useful.

  • YourName

    Torrents

    ….better selections, MORE content…

    ’nuff said….

  • Deck

    Canceled last month and glad to see others did as well! The people have spoken and they say f’ your price increase! Only the kids watched the streaming content and the Starz movies always had poor picture quality.

  • Anonymous

    If you want to greatly improve Netflix, improve the content available on streaming. I want TV show episodes the day their air, and movies when they’re released on DVD. 
    Oh, and I’d pay more for it, and I don’t think I’m the only one who would. 

  • Anonymous

    Netflix definitely screwed themselves with the price hike. I occassionally stream movies thru my XBOX but the selection is terrible. If you want 80s – 90s movies then it’s a blast.

  • Nobody

    Netflix is going to be fine. The price increase had to happen, because Hollyweird is going to cockblock the content without the bucks. It’s not free. You have to pay if you want the new stuff. 

    • Anonymous

      Baaaa…. Baaaa…  Head to the slaughter sheep.

    • Afrank

      Apple blocked the music industry trying to increase the 99 cents per song for so many years. iTunes had complete market share and could dictate to the music industry. Netflix had complete market share in the streaming industry. They could have gone toe to toe. Who ever blinks first. Netflix had loyal customers. They’re Netflix we’re forced to hank certain studio Netflix could have just gone public and said the hollywood people were greedy. The public would have sided with Netflix and Hollywood would have blinked and gone down on their price demands.

  • Anonymous

    Come on you sheeple.  CANCEL!  Send the money grubbing bastards a message.  You won’t put up with a 60% price increase.

  • Steve Ramirez

    It’s Netflix fault that they lost all those subscribers. They should have taken a better strategy with the price increases.

  • Ictponder

    Glad to see this…you can’t raise your prices and lower your service and expect people to do nothing.

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