Netflix have had a very bad time lately, with them admitting on Monday that they lost more customers than expected in the third quarter, which stems from an issue to divorce rentals of DVDs from streaming video services, and they've also predicted that subscriptions for DVD delivery will sharply decline in the current period.
Netflix have also projected that they'll begin to lose money for a few quarters starting in the next period, because of costs associated with their expansions in both the UK and Ireland, also announced on Monday. Investors... not so happy. It was a near-instant reaction with share prices dropping once again. They had already fallen 61-percent from their all-time high in mid-July, falling 26-percent more in after-hours trading Monday, following the quarterly report.
Netflix's market value was $16 billion and has now plummeted to just $4.6 billion, all in the space of three months. Netflix have also stated they've lost roughly 800,000 subscribers in the third quarter, which ended with 23.8 million U.S. customers, this is after years of a steadily increasing subscriber base.