Unexpectedly high customer losses for Q3 sent Netflix stock into a tailspin in after-hours trading Monday, driving share prices down more than 30 percent overnight. The online video and DVD-by-mail provider lost 800,000 customers during the quarter behind it, and it projected a net loss for the quarter ahead. After a price reshuffling in July, the company expected to lose around 600,000 customers. Instead, Nexflix’s total customer count now stands at 23.79 million, down 800,000 from the 24.59 million it had three months ago.
It was just a matter of time before Netflix started losing their customer base once they implemented the separate cost structure for streaming vs dvd rentals.
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Customer Defections Wallop Netflix
Posted by: Rachelle Dragani October 25, 2011 09:15 AMUnexpectedly high customer losses for Q3 sent Netflix stock into a tailspin in after-hours trading Monday, driving share prices down more than 30 percent overnight. The online video and DVD-by-mail provider lost 800,000 customers during the quarter behind it, and it projected a net loss for the quarter ahead. After a price reshuffling in July, the company expected to lose around 600,000 customers. Instead, Nexflix’s total customer count now stands at 23.79 million, down 800,000 from the 24.59 million it had three months ago.