October 30, 2011
Netflix loses 800k US customers in Q3
Hot on the heels of LoveFilm's parent Amazon seeing profits fall 73% in the last quarer comes the news that Netflix reported the loss of more than 800,000 subscribers, and admitted its launch in the UK and Ireland in early 2012 will push it to a global net loss.
Whilst revenues rose a healthy 49% year on year to $822m shares in Netflix, which had been trading at $300 in mid-2010, fell 27% in trading last week to $86.84.
Short term expansion pain or a flawed product? Personally, I think these services will struggle here until broadband speeds are faster across the whole country - no-one will be happy with a buffering or pixelated TV service and HD is now a must for those with the larger panels.