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Netflix earnings: 800,000 U.S. subscribers lost in Q3 - Oct. 24, 2011
NEW YORK (CNNMoney) -- For Netflix, the hits keep on coming -- the bad kind.
The latest thwack: Netflix lost 800,000 U.S. subscribers in the quarter that just ended, which was littered with PR nightmares including a price hike and the Qwikster debacle. It was the first time in years that Netflix's U.S. customer base shrank instead of grew.
Netflix spoke bluntly about the recent problems in its third-quarter earnings letter, released late Monday.
"The last few months...have been difficult for shareholders, employees, and most unfortunately, many members of Netflix," Netflix CEO Reed Hastings wrote in a letter to shareholders. "We've hurt our hard-earned reputation, and stalled our domestic growth."
Netflix said it was focusing on the future, promising customers that "we are done with pricing changes." But it doesn't think the subscriber hemorrhaging is at an end.
Netflix had 23.8 million total U.S. subscribers as of Sept. 30, down from 24.6 million three months earlier. Around 21.5 million customers had streaming subscriptions, and just under 14 million had DVD subscriptions, with most customers mixing the two.
By the end of the ongoing quarter, which wraps up Dec. 31, Netflix expects those numbers to drop further. It forecast that it will have 20 million to 21.5 million streaming customers and up to 11.3 million DVD subscribers in the U.S.
Netflix shares plunged 27% in after-hours trading, though the company reported earnings that beat analysts' expectations. Netflix earned $62 million, or $1.16 a share, on a record $822 million in revenue.
NEW YORK (CNNMoney) -- For Netflix, the hits keep on coming -- the bad kind.
The latest thwack: Netflix lost 800,000 U.S. subscribers in the quarter that just ended, which was littered with PR nightmares including a price hike and the Qwikster debacle. It was the first time in years that Netflix's U.S. customer base shrank instead of grew.
Netflix spoke bluntly about the recent problems in its third-quarter earnings letter, released late Monday.
"The last few months...have been difficult for shareholders, employees, and most unfortunately, many members of Netflix," Netflix CEO Reed Hastings wrote in a letter to shareholders. "We've hurt our hard-earned reputation, and stalled our domestic growth."
Netflix said it was focusing on the future, promising customers that "we are done with pricing changes." But it doesn't think the subscriber hemorrhaging is at an end.
Netflix had 23.8 million total U.S. subscribers as of Sept. 30, down from 24.6 million three months earlier. Around 21.5 million customers had streaming subscriptions, and just under 14 million had DVD subscriptions, with most customers mixing the two.
By the end of the ongoing quarter, which wraps up Dec. 31, Netflix expects those numbers to drop further. It forecast that it will have 20 million to 21.5 million streaming customers and up to 11.3 million DVD subscribers in the U.S.
Netflix shares plunged 27% in after-hours trading, though the company reported earnings that beat analysts' expectations. Netflix earned $62 million, or $1.16 a share, on a record $822 million in revenue.
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