More Bad News For Netflix: 800,000 Customers Lost
RENEE MONTAGNE, HOST:
NPR's business news starts with more bad news for Netflix.
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MONTAGNE: First, there was the price change, which drove away customers. Then there was a botched attempt to split the company in two - DVDs and streaming. Netflix pulled back after a big backlash. Now Wall Street is digesting the damage. Yesterday, Netflix announced it lost more than 800,000 customers in the most recent quarter. And it could soon post a loss as it spends money to roll out its video streaming service in the UK. The company did report a nearly 50 percent jump in revenue over last year, but Wall Street seemed focused on the bad news. Investors sent Netflix's stock price down more than 25 percent.
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