Netflix Braces to Forgo Profit to Gain Customers
- Share via
From Reuters
Online DVD rental leader Netflix Inc. is prepared to sacrifice profit for as long as five years to win as many as 20 million U.S. subscribers and fend off major rivals such as Blockbuster Inc. and Amazon.com Inc., its chief executive said.
Netflix cut its price in October to $17.99 in anticipation of what CEO Reed Hastings believed was Amazon.com’s imminent entry into the U.S. market.
Los Gatos, Calif.-based Netflix shares fell 11 cents to $10.68 on Nasdaq.
More to Read
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.