LOS GATOS, Calif. (AP) -- Netflix will break down the damage from a recent price increase and botched attempt to split up its video subscription service when it reports its third-quarter earnings.The results, due out after the stock market closes Monday, cover the most dreadful period since Netflix went public nine years ago.The root of the problem: Netflix Inc. raised its prices for combination packages of DVDs-by-mail and Internet video streaming by as much as 60 percent effective Sept. 1. After the higher prices kicked in, Netflix CEO Reed Hastings made things even worse last month by outlining a plan to spin off the DVD rental side into a separate website called Qwikster, a move so reviled by subscribers that he changed his mind within a three-week spin.The price increase alone has been enough to drive away hordes of customers. If Netflix's projections pan out, its service will have lost 600,000 U.S. subscribers from the end of June to the end of September -- by far the worst customer downturn in the company's history. That would leave Netflix with about 24 million U.S. subscribers. More than 1 million other customers pay for the Internet streaming-only service in Canada and dozens of Latin American countries.Investors fear the third-quarter defections are just the start of what could be a long fall from grace. Those worries have driven Netflix's stock down by 60 percent since the price increases were announced in mid-July. The sell-off has wiped out $9 billion in shareholder wealth. Netflix shares finished last week at $117.04.The stock could be rocked again if Netflix forecasts even more subscriber losses in the current quarter ending in December.Despite the customer backlash, Netflix remains on solid financial ground. Analysts polled by FactSet expect the company to earn 96 cents per share on revenue of $812.5 million.Ahead of the opening on Monday, Netflix disclosed plans to offer its online subscription service to the United Kingdom and Ireland starting early next year, providing access to movies and television shows. The price of the service was not disclosed.
America has no tolerance for wealthy people griping about their financial woes. But they have concerns too.