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Tuesday
Oct252011

Netflix Loses 800,000 Subscribers over Price, Rental Changes

PRNewsFoto/Netflix, Inc.(LOS GATOS, Calif.) -- Netflix is paying for its recent missteps and loss of goodwill.

The Internet movie rental provider announced Monday that the number of its subscribers dropped to 23.79 million last quarter -- a plunge of 800,000 from the 24.59 million users in the second quarter.

The subscription drop came as Netflix announced it was raising its prices by as much as 60 percent and dividing its DVD-by-mail and online streaming services, causing an outcry among users, who cancelled their memberships in protest.  The company has since nixed its plan to separate its rental businesses.

Monday's third quarter report also rocked the company on Wall Street, sending its shares down 27 percent as trading wrapped up for the day.

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