Netflis last business decision did not sit well with their subscribers. According to recent reports, they lost more than 800,00 U.S subscribers and their quarterly results were as bad as well. Their shares dropped more than 25%. They warned their investors the declines in DVD subscribers this quarter and their expansion into the Britan and Ireland market would push them into the red in their First quarter.
We expect the costs of our entry into the UK and Ireland will push us to be unprofitable on a global basis; that is, domestic profits will not be large enough to both cover international investments and pay for global G&A and technology and development.
I’m pretty sure everyone know the main cause of them loosing so much was due to the inexplicable price raise and loosing contracts thus less in their library. Let’s see what they have in sto