Netflix Continues to Admit to Mistakes


On Monday, Netflix revealed it lost 800,000 subscribers in the third quarter — even more than were expected in the wake of its price-changing and Qwikster debacles. Additionally, it was announced that the company expected to lose money in the coming quarters, having made the expensive decision to expand to the United Kingdom and Ireland. Naturally, investors didn't like any of this — stock was down by 26 percent by the end of the day, leaving the company with a market value of $4.6 billion. (It was $16 billion three months ago.) CEO Reed Hastings once again trotted out his self-deprecating (and apparently ineffective) brand of damage control, telling an interviewer, "We made a couple of big mistakes this year. It's up to us to own up to those mistakes and to move forward." However, he added, there were no plans to woo back lost subscribers: "The focus is on bringing back our reputation and brand strength, but it won't happen through grand gestures." [WSJ]