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800K fewer subscribers humbles Netflix


The big number in the third-quarter report was 800,000, which is roughly the amount of subscribers that Netflix lost on the heels of its unpopular decision to raise prices and its now-nixed plan to spin off its DVD-by-mail service into a separate company.

As CNET points out, the loss is quite the reversal for a company that had managed to add at least 1 million new subscribers in each of the previous seven consecutive quarters. The company reported it had 23.8 million subscribers at the end of September, down from 24.6 million three months earlier.

The Wall Street Journal notes that Tuesday's stock plunge has shares trading around $75 for the first time in 18 months and "continues a dramatic tumble that has erased about $12 billion from the company's market value in just 104 days."

The paper adds, however, that despite the subscriber losses, the company's profits and revenues were actually up. Still, Netflix gave its investors even more to worry about it when it said that it expects to start losing money for a few quarters beginning in early 2012 because of costs associated with an expansion in Great Britain.

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