Netflix stock nosedives 19 percent after company ticks off customers
Netflix stock took a wallop after Netflix predicted 1 million US customers would cancel their subscriptions.
After rocketing up last year, Netflix's stocks tumbled almost 19 percent Thursday.Skip to next paragraph
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Earlier this year Netflix CEO Reed Hastings saw his pay double after stocks tripled. The web-based movie rental company had released set-top devices and partnered with makers of consoles like PS3, Xbox, and Wii to make it easier for customers to stream movies and TV shows to their living rooms. In March, Netflix announced its first exclusive serialized drama, "House of Cards," staring Kevin Spacey.
Their streaming videos had become so popular that Sandvine reported in May that 22 percent of all North American Internet traffic was from Netflix (by comparison, YouTube videos only accounted for 8 percent).
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Watch video of the debate over Netflix's long-term prospects in an increasingly competative market: