Netflix's share price plummets over failure to meet target subscriptions

PanARMENIAN.Net - Netflix's share price has dropped more than 25% after the company failed to meet its subscription target in the last quarter.

The online streaming service added 3 million new streamers between July and September, but this figure was below the forecast of 3.69 million.

As Digital Spy said citing The Guardian, the company's revenue for the last three months was $1.22 billion, which was also down on forecasts.

In a letter to shareholders, Netflix said: "We remain happy with the price changes and growth in revenue and will continue to improve our service. The effect of slightly higher prices is factored into our Q4 forecast."

The company did point out that the impact of the drop "appeared to be offset for about two months by the large positive reception to season two of Orange Is the New Black", which debuted in June.

Netflix now has 53.1 million subscribers, and is forecasting a further 4 million members before the end of 2014.