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Netflix Lowers Outlook Following Subscriber Split

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LOS GATOS (CBS/AP) — Netflix has lowered its U.S. subscriber expectations for the third quarter because of customer losses relating to a split of its DVD and streaming options.

The company, which separated its streaming and DVD-by-mail services two months ago, said Thursday it now expects 21.8 million subscribers for its streaming-only service and 14.2 million subscribers to get DVD plans. That’s down from a late July estimate of 22 million streaming customers and 15 million DVD subscribers. It sees the most subscriber decline in DVD-only plans. That forecast went to 2.2 million from 3 million.

It backed its forecast for international subscribers and overall third-quarter earnings.

The Los Gatos company said that despite the revision, it thinks the split was the right move.

 

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

 

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