This week, Netflix announced that in the third quarter of this year they lost about 800,000 subscribers in the United States. The cancellations stem from the fee increases over the summer. However, the total number of cancelled subscriptions are far more than Netflix executives expected.
As a result, the Netflix stock fell an astronomical 37 percent. At 9:39 am the stock was selling at $75.28. As recent as July 13th, it was selling at $298.73.
Problems started for Netflix when they raised prices and then decided to provide DVD rental and streaming video as separate services to be paid for separately.
With more losses expected in the fourth quarter and into 2012, Netflix executives are likely to reevaluate their recent policies.
There are now 23.8 million Netflix subscribers in the United States and with the struggling economy, more and more people are expected to get rid of the extra bill every month.