Netflix cuts Q3 subscriber estimates

LOS GATOS, CA – Netflix has lowered its third quarter subscriber estimates for the U.S. after hiking prices and separating its streaming and DVD-by-mail into two distinct services.In a note to shareholders on Thursday, CEO Reed Hastings and CFO David Wells wrote that Netflix expects to have 21.8 million streaming customers and 14.2 million DVD customers at quarter end, down from the 22 million and 15 million, respectively, that it forecast in July. “Despite the guidance revision, we remain convinced that the splitting of our services was the right long-term strategic choice”, the note reads. “We know our decision to split...