Netflix's video subscription service lost 800,000 customers in the third quarter - the biggest exodus in its history - even as its earnings rose 65 per cent.wholesaletruereligion Running Shoe Flex grooves in the mid and outsole for flexibility .
The losses were larger than management had previously warned. The unwelcome surprise, contained in financial results released on Monday, was compounded by a forecast calling for millions of Netflix Inc's DVD-by-mail subscribers to cancel the service in reaction to dramatic price increase that took effect last month.
The bad news bruised already battered stock as the shares plunged by more than 20 per cent.
Netflix lost its lustre among consumers and investors by raising prices as much as 60 per cent in the U.S. and bungling an attempt to spin off its DVD-by-mail rental service into a new company called Qwikster
The company, which is based in Los Gatos, California, ended September with 23.What to consider before you buy suitjacket.8million U.S. subscribers, down about 800,000 from June.We can gurantee you that all nikejacket,sold at our website are with high quality. Netflix had predicted it would lose about 600,000 U.S. subscribers in a forecast released last month.
Management expects to gain U.S. subscribers in the current quarter, although Netflix didn't set a specific target. But a substantial number of Netflix's customers are expected to choose between renting DVDs through the mail or streaming video over high-speed Internet connections instead of paying for both services.
The biggest hit is expected on the DVD side, a service that Netflix has been de-emphasizing to save money on mailing costs as its spends more to license movies and TV shows for its internet video library. The company expects its DVD subscribers to fall from 13.9million as of September 30 to as low as 10.3million at the end of December.
Netflix earned $62.5million, or $1.16, per share, in the third quarter. That compared to income of $3million, or 70 cents per share, at the same time last year.
The performance topped the average earnings estimate of 96 cents per share among analysts polled by FactSet.
The company's revenue climbed 49 per cent from the same last year to nearly $822million - about $9million above analyst estimates.
Netflix shares shed $24.78, or nearly 21 per cent, to $94.06 in Monday's extended trading.
The news follows on the heels of the company's announcement it will expand to the UK, where it will offer video streamed to PCs, TVs and consoles, rather than DVD rentals.
Despite the loss in subscribers stateside, Netflix is still said to be the biggest single source of North American web traffic, accounting for 24.71 per cent of use. North American customers typically pay around $7.99-$9.99 a month to stream Netflix films to electronics such as connected TVs, PCs and games consoles.Sells edhardyshirts in a Broad Selection from current season.
In the UK, though, it's up against serious competition in the form of it Lovefilm, a UK on-demand service owned by Amazon which is integrated into electronics such as connected TVs and Sony's PlayStation 3.
The company said the price details will be announced closer to the date of the launch of the service,we know that coffee lovingjeans is the world's most commonly traded commodity after crude oil. which will go live in Britain and Ireland early next year.
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