Netflix Loses 800,000 Subs in Q3

LOS GATOS: Netflix’s third-quarter financial results showed a loss of 800,000 subscribers since last quarter, though revenue was up 49 percent, to $822 million, from 2010.

Net income was $62 million for the quarter, a gain of 63 percent from 2010. U.S. revenue grew 44 percent to $799 million, while international revenue was $23 million.

Netflix reported 23.8 million subscribers, with 21.5 million using the streaming service and 13.9 million opting for the DVD service. This number reflects a loss of 800,000 from last quarter.

In a letter to shareholders, Netflix’s CEO, Reed Hastings, and CFO, David Wells, stated, "We continue to be well positioned to succeed in the large global market for streaming video. Consumer demand for unlimited, on-demand movies and TV shows streamed over the Internet keeps growing, driven by increased broadband penetration, the adoption of Smart TVs, and increased video consumption from laptops, tablets, and phones. Moving forward, we are focused on continually improving our service, by expanding our streaming content library and enhancing our user experience, to both build consumer trust and to stay ahead of the competition."