Feeds

Netflix shares fall on profit warning

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

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.