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Netflix Account Losses Much Higher Than Expected

By Rebecca Davis on October 26, 2011 1:09 pm in Entertainment News, Latest News, Stock News, US News / no comments

Netflix reported a loss of 800,000 subscribers, which lowered its customer base to a total of 23.8 million U.S. subscribers, while Netflix managers and analysts expected the company will lose some 600,000 customers in the United States. The company stock fall 35 percent on the news with market analysts predicting Netflix will witness even more massive loss of customers across the U.S.

Netflix Stocks Fall

In July, the company had split its streaming and DVD rental services and increased prices by as much as 60 percent, which provoked dissatisfaction among customers and markedly lowered its customer base within months.

In June, the company shares were traded at $300 per share while on Tuesday Netflix stocks decreased to $41.34 per share, which is the second lowest level in the company history. Later, Reed Hasting, Netflix CEO, went on to say that the company’s core business model is working while the company forecasts show its domestic streaming subscribers will gradually decrease to about 20 to 21.5 million in end-December.

Market analysts expected Netflix to post profit of $1.10 per share on sales of $919 million in the fourth quarter of 2011, compared to profit of $0.87 per share on sales of $595.9 million in the same period of 2010. However, the company forecasts it will post fourth-quarter profit per share of $0.36 to $0.70 per share on sales worth $19 to $37 million.

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About the author

Rebecca Davis began her career in journalism 10 years ago. Her passion includes a wide range of topics that include music and movies. With a forward vision on delivering accurate content to her readers about the hottest entertainment topics, you can be certain that Ms. Davis will focus on the issues that are important for you. Ms. Davis does hold a degree in Journalism and feels that painting the full picture on any story is essential. When she began her career, she was a general news reporter and then quickly moved on to the Entertainment columns. With her experience, she is able to deliver a quality article that you can count on. During her time as an entertainment writer she has worked on everything from reviews to celebrity interviews. Her articles are gripping and honest and this is one of the reasons why she has achieved a strong readership level over the years. With a wide range of experience, she continues to grow her experience levels with a focus on expanding her career in new directions. When Davis isn't working on breaking entertainment news, she can be found working on other personal interest stories. In recent years, she has worked on relationship advice, suicide prevention and how to handle domestic violence with loved ones. Her vast experience of knowledge has helped her to become recognized as a socially conscious individual who has quickly become a trusted individual. If you have any questions for Ms. Davis or have information on a breaking story, please take the time to contact her.