More Bad News For Netflix: 800,000 Customers Lost
RENEE MONTAGNE, HOST:
NPR's business news starts with more bad news for Netflix.
(SOUNDBITE OF MUSIC)
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.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.