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Netflix Stock Hammered AgainPOSTED October 25, 2011 LOS GATOS -- Netflix, the leading Internet movie and TV site, saw its shares hammered again after reporting third quarter earnings and the loss of 800,000 subscribers in the U.S. Netflix reported 23.79 million subscribers at the end of the third quarter, down from 24.59 million in the second quarter. The company has been dramatically hit after announcing a price increase in July when it raised prices from $9.99 per month to $15.98 per month for both DVDs and streaming video. Since the price increase, customers created an uproar on blogs and websites over the new rates and also Netflix management's announced plan to split DVD service from streaming to a separate site called Qwikster. Earlier this month, CEO Reed Hastings announced the company will not split up and form the Qwikster site. Members can choose from plans with streaming only for $7.99 per month, DVD only at $7.99 per month and a combination for $15.98 per month. Netflix says 7% of new subscribers are choosing the combination plan. The company reported total revenues of $822 million in the quarter and net income of $62 million but warned of potential losses as it expands to the UK and Ireland next year. The company ended the quarter with a total of 21.4 million streaming subscriptions and 13.9 million DVD subscriptions. Shares have plunged in Netflix stock over 35% since the earnings were announced Monday. Shares in the company have traded as high as $304 this year. The company admitted that the PR storm over the price changes has engulfed its brand and has negative impact through word-of-mouth.
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