Netflix lowers subscriber forecast on plan split
Reed Hastings, chief executive and founder of Netflix, and memers of the international press attend a party to celebrate the launch of Netflix at the Museo Interactive de Economia in Mexico City. (Sept. 12, 2011) Credit: Getty Images
Netflix is lowering its U.S. subscriber expectations for the third quarter because of customer losses relating to a split of its DVD and streaming options.
The company, which separated its streaming and DVD-by-mail services two months ago, said Thursday it now expects 21.8 million subscribers for its streaming-only service and 14.2 million subscribers to get DVD plans.
That’s down from a late July estimate of 22 million streaming customers and 15 million DVD subscribers. It sees the most subscriber decline in DVD-only plans. That forecast went to 2.2 million from 3 million.
It backed its forecast for international subscribers and overall third-quarter earnings.
The Los Gatos, Calif., company said that despite the revision, it thinks the split was the right move.
Shares of Netflix slipped 16 percent in premarket trading.
Sarra Sounds Off, Ep. 25: Wrestling and hockey state championships On the latest episode of "Sarra Sounds Off," Gregg Sarra and Matt Lindsay recap all the state wrestling action from Albany this past weekend, plus Jared Valluzzi has the ice hockey championship results from Binghamton.
Sarra Sounds Off, Ep. 25: Wrestling and hockey state championships On the latest episode of "Sarra Sounds Off," Gregg Sarra and Matt Lindsay recap all the state wrestling action from Albany this past weekend, plus Jared Valluzzi has the ice hockey championship results from Binghamton.
