Netflix shares plunged in New York this evening, losing more than a third of their value, after the US video service revealed that it continued to lose US subscribers amid a backlash against a new pricing scheme.
At one point, Netflix shares were down 35% to $77.29 on the Nasdaq stock exchange.
The sell-off came after Netflix, which has seen a spate of management bungles in recent months, said late last night it had lost 810,000 US subscribers in the third quarter, leaving it with 23.8 million subscribers.
Netflix said net profit rose 65% to $62m in the third quarter compared to the same quarter a year ago while revenue was up 49% to $822m.
While revenue and earnings per share came in better than expected by Wall Street analysts it was the loss of US subscribers that sent Netflix shares tumbling.
The company suffered a backlash from members in September when it announced a price hike for customers who receive both its online video streaming service and its DVD-by-mail service.
In addition to raising prices, Netflix announced it would separate the two services, with the DVD rental service rechristened "Qwikster". After customers voiced outrage and began quitting en masse, the company quickly backpedalled on the separation plan, but not the higher prices.
Netflix on Monday announced plans to expand its online streaming video service to Britain and Ireland next year.
