Netflix Loses 800,000 US Subscribers In Tough 3rd Quarter

LOS GATOS (CBS/AP) – 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 a specific 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.

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 This material may not be published, broadcast, rewritten, or redistributed.)

  • Digital View

    Netflix will be used in business schools as a case study. It will be entitled “how to ruin a company and its investors in under one year. ”

    This damage is irreversible.

  • Netflix Shares Tank Amid Backlash & Defections | Just2Hype

    […] (CBS/AP) – Netflix shares plunged 35 percent Tuesday after the one-time Wall Street favorite revealed a massive departure of subscribers angered by price increases and other questionable changes at rental service that was created to […]

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