Netflix Loses 800,000 Subscribers in Third Quarter

-- Streaming Video Provider to Expand into UK, Ireland in 2012

 

Netflix said Monday that it lost about 800,000 subscribers during the third quarter, and the online video provider warned that it expects more customers to cancel their subscriptions during the fourth quarter. It ended the quarter with 23.79 million subscribers, down from 24.59 million subscribers it reported at the end of the second quarter.

The company blamed its subscriber losses on the subscription price hike it implemented on Sept. 1, and the resulting PR storm. "In spite of this, we continued to experience year-over-year growth in gross additions, acquiring 4.7 million new subscribers, or nearly 20 percent year-over-year growth," Netflix wrote in a letter to shareholders. 

Netflix says that it expects its DVD-by-mail subscriptions will "decline sharply" during the fourth quarter, and that the number of streaming video subscribers on its books will also decline during the quarter. "We expect streaming net additions will be negative in October due to the cancellation wave ... and as the wave subsides and gross additions remain strong, net additions will be about flat in November," the company wrote the letter to shareholders. 

Separately, Netflix announced that it plans to launch its streaming video service in the United Kingdom and Ireland next year.  The company also released a new app for mobile phones and tablets running Google's Android platform. 

Region: 
North America