I was out sick yesterday, so I'm a bit slow with the news. Hacking NetFlix reports several big ones:
1. Netflix is lowering the price of the 3-out subscription plan to $17.99 per month, starting in November.Read more.
2. Amazon is entering the DVD rental maket, according to Netflix.
3. Netflix announces GAAP Net Income of $18.9 million for Q3 2004, based on revenue of $141.6 million for the quarter.
4. Netflix has postponed European expansion plans to focus on the increasing U.S. competition.
5. The churn rate remained constant at 5.6% since last quarter.
6. The stock dropped from $17.43 per share to $10.99 in after-hours trading tonight.
7. Netflix is expecting to break even over the next year instead of being profitable.
Mike says Netflix is on the defensive, trying to deal with increased threats from competition with Amazon, Blockbuster, Walmart, Greencine; hence the price change and the more conservative strategies. Sounds about right to me. He has a list of links to news reports around the Web.