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These days Netflix it can't win or lose it back in July this stock traded at 304 dollars -- share and Wall Street couldn't get enough of it today it is down 42 dollars a share that's up 35%.
Plunge since it reported earnings last night.
So what went wrong.
Well that earnings were stellar they're up 63%.
Vs the third court of -- -- of revenue up almost 50% subscriber growth up 41%.
So way to deal with that well the turns out the problems what lies ahead Netflix lost 800000 customers in the corner.
And it's gonna lose maybe -- half billion -- online subs in the fourth quarter and maybe three point one million dvd.
-- and that's because the company kicked off its customers in the summer it's set up bald faced 60% price increase to get both dvds and online movies.
Now it says it could lose that one a half million online so subscribers by year end.
And maybe three million dvd customers as well at 300 million.
An annual revenue the can be lost worst.
Netflix now predicts that because that international expansion.
It's gonna run a loss in the first few quarters of next year company did reveal that unpleasant surprise until page nine of its letter to shareholders.
Netflix is suffering from a challenge it has killed many companies that -- p.s from the old visits to the new from dvds in this case online streaming.
-- dvds are patent they still have higher profit margins though than the Internet business 50% -- 8% that online stuff.
That's because the companies quadrupled its spending and only three years do you all this on line stop the company now comes out and says you know may have called what they said they -- what we -- judge was how quickly to move there from that trapeze.
And they simply compounded the problems are a lack of explanation about the rising costs expansion of the streaming content in this and that dvd and G after that many perceived us.
As a greedy.
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