Netflix Shares Plummet 27% on Subscriber Numbers

Netflix shares are down over 27 % after hours.

The good news — earnings of $62.5 million, or $1.16 a share, up from last year and beating expectations — is being drowned out by the number of subscriber defections, about 800,000 from Q2 to Q3.

The Los Gatos-based company took the unusual step of offering a “Letter to Shareholders” (pdf) along with its earnings release.

“The last few months have been difficult for shareholders, employees, and most unfortunately, many members of Netflix…(W)e greatly upset many domestic Netflix members with our significant DVD-relating pricing changes, and to a lesser degree, with the proposed-and-now-cancelled rebranding of our DVD service,” the letter says.

Related

  • Sheila Norman

    What is up with Netflix’s management? They have written the perfect strategy on how to loose customers. Provide a needed service at a reasonable cost. Then raise the cost for use and lower the quality of the product provided. Huh?

  • Elisabeth Handler

    I’ve been trying to quit my subscription but spent too long on hold and I couldn’t find an “unsubscribe option on the website… hmm.

Author

Jon Brooks

Jon Brooks writes mostly on film for KQED Arts. He is also an online editor and writer for KQED's daily news blog, News Fix. Jon is a playwright whose work has been produced in San Francisco, New York, Italy, and around the U.S.

Sponsored by

Become a KQED sponsor