Summary Box: Netflix's fortunes sink on price hike

AP News
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Posted: Sep 15, 2011 6:45 PM
Summary Box: Netflix's fortunes sink on price hike

CUSTOMER BACKLASH: Netflix's decision to raise the prices of its video subscription service by as much as 60 percent isn't panning out like management anticipated. The company warned investors Thursday the higher rates are triggering more cancellations than it expected.

THE FALLOUT: At the end of September, Netflix predicts it will have 24 million U.S. subscribers. That would be down from 24.6 million at the end in June. It will be only the second time in Netflix's history that the company's customer count has fallen from one quarter to the next.

MARKET REACTION: Netflix shares plunged by about 19 percent.