Dan Frommer lays out Q3 for Netflix, which wasn’t pretty compared to their previous stellar performance. Subscribers are down 800k and they lost 20% in stock, but there may be some good news:
Only 7% of Netflix’s new streaming subscribers — the future of the company — are signing up for DVD rentals. All of this trouble that Netflix has been through is in an effort to kill the DVD, so Netflix can push consumers and Hollywood toward an era of streaming. And despite all the drama, losses, and brand damage, it seems to be working.
The big question is whether Hollywood will cooperate. There is little money to be made in small picture screening, and the resurgence of 3D media is where the dollars are.