Netflix Expects Net Loss for 2012 - Broadcasting & Cable

Netflix Expects Net Loss for 2012

Raises $400 million; projects 'relatively flat' revenue as sub cancellations continue
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Netflix is continuing to lose customers in the fourth quarter -- after losing a record 800,000 net subscribers in Q3 -- and expects quarterly revenue to "relatively flat" through next year, leading the company to forecast a net loss for 2012.

The company disclosed the updated guidance in a Securities and Exchange Commission filing Monday regarding two financing deals through which it raised about $400 million in capital.

"We expect that consolidated quarterly revenue will be relatively flat until we can achieve positive net subscriber additions," Netflix said, noting that will result in net losses coupled with increased investment in non-U.S. expansion.

On Monday, Netflix said it raised $200 million through the registered sale of common stock to certain mutual funds and accounts managed by T. Rowe Price Associates, and raised $200 million through the private placement of convertible notes to funds affiliated with Technology Crossover Ventures (TCV).

"With this additional capital from two long-term oriented investors, we have strengthened our balance sheet and remain focused on growing our streaming subscriptions and returning to global profitability after our launch of the U.K. in 2012," Netflix chief financial officer David Wells said in a statement.

Click here to read the full story at Multichannel News.

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