The total number of Netflix subscribers fell from 24.59 million to 23.79 million during the third quarter of the year, following consumer upset about prices hikes and the split between the streaming and DVD businesses.
“We greatly upset many domestic members with our significant DVD-related prices changes and to a lesser degree, with the proposed and now-cancelled rebranding of the DVD service, we’ve hurt our heard-earned reputation, and stalled our domestic growth.”
The DVD price hike shocked many Netflix members and “more of them have expressed that by cancelling Netflix than we expected.”
The company said revenue and profits were affected, “but we’ll remain profitable on a global basis.” As announced Netflix will roll out in the UK and Ireland in the first quarter of 2012 and the company expects this will be reflected in the figures.
Netflix will first absorb its losses on the European launch and has said it will not roll out in any more territories. “We will pause on opening new international markets until we return to global profitability.”
