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Netflix sheds customers in wake of price hikes

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By John Glenday, Reporter

October 25, 2011 | 1 min read

Netflix, the US video rental firm poised to launch in the UK next year, has posted an 800,000 fall in its subscriber base for the third quarter of 2011 as customers desert the online entertainment specialist.

The drop follows a price hike earlier in the year in which prices were raised for both DVD rentals and online streaming – prompting the exodus.

DVD sales make 10 times more profit per customer but the sector is declining far faster than streaming, as many as 3.6m (26%) of its 13.9m DVD subscribers by the end of the fourth quarter.

Despite this the firm still retains 23.8m subscribers and posted a 65% rise in profits for the quarter to £39.1m.

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