Netflix Loses 810,000 Subs
Netflix ended the quarter with 23.8 million subs, down from the 24 million that the company had forecast. Broken down, Netflix ended the past quarter with 21.45 million streaming subs and 13.9 million DVD subscribers, down from an expected 21.8 million streaming subs and 14.2 million DVD customers.
Netflix's third-quarter financial story was a better one, as it posted earnings of $1.16 per share on revenues of $822 million, more than the $1.05 per share and $812.50 that analysts were expecting.
But Netflix also warned of a tough fourth quarter, at least when it comes to its DVD business. "We think DVD subscriptions will decline sharply this quarter ... due to our price changes," the company said in a letter (PDF) to shareholders. "Nevertheless, we do anticipate that total unique U.S. subscribers will be slightly up in Q4."
Netflix shares were down $25.93 (21.82%) to $92.91 in after-hours trading Monday.
— Jeff Baumgartner, Site Editor, Light Reading Cable