Feeds

Netflix shares fall on profit warning

Movie rental firm will make a loss if it can't recover from Qwikster debacle

Protecting users from Firesheep and other Sidejacking attacks with SSL

Netflix shares dropped 5.4 per cent in New York trading yesterday after the movie rental firm announced it had raised $400m from existing investors, but warned that it might not do too well next year.

"If we do not reverse the negative consumer sentiment toward our brand, and if we continue to experience significant customer cancellations and a decline in subscriber additions, our results of operations including our cash flow will be adversely impacted," the firm said in a late filing relating to the stock sales.

The video-streaming and DVD rental service dropped itself in it this summer when it announced plans to split up its business and charge more for its packages. For reasons unknown, Netflix decided it would be a good idea to spin off the DVD part of its service into a separate company, which it planned to name Qwikster.

The wildly unpopular decision led to subscribers leaving the company in their droves and eventually the reversal of the split.

Netflix is now planning its entry to the UK and Europe next year in moves that it hopes can mark a change in its fortunes. To get that change going, it raised two lots of $200m by selling shares to long-time investors in the company: T Rowe Price Associates and Technology Crossover Ventures.

The market, however, was not impressed enough by the share sale to discount the warning about profits next year, and shares dropped 5.4 per cent to $70.45. They fell another 0.7 per cent, to $69.77 in early trading on Wednesday. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.