Netflix Drops 800,000 U.S. Subscribers In Q3

Video company suffers loss after changing price plans
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Unhappy Netflix customers voted with their wallets, with the video-rental company dropping 800,000 U.S. subscribers in the third quarter after an ill-advised decision to split apart its DVD-plus-streaming plans -- and the company anticipates shedding at least 2.5 million accounts in the fourth quarter.

The company previously said it expected to lose 600,000 domestic subscribers in the quarter ended Sept. 30 as a result of the price change, which raised rates for many by 60%.

"Our primary issue is many of our long-term members felt shocked by the pricing changes, and more of them have expressed that by cancelling Netflix than we expected," Netflix CEO Reed Hastings and CFO David Wells wrote in a letter to shareholders.

Click here to read the full story at Multichannel.com.

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