By John Glenday

Online streaming service Netflix has suffered a flight of capital after a profit warning sent investors into a panic with shares dropping 26 per cent to $330.

The previously booming service conceded that it had signed up fewer new subscribers than expected in the third quarter following a $1 US price increase to $8.99 a month, sharply reducing earnings estimates for the fourth quarter.

Whereas previously Netflix had estimated enticing 3.7m new subscribers to its fold it actually managed just 3m, casting doubts on the entertainment providers ability to convince 4m new subscribers to sign up in the next quarter.

To compound Netflix’s Read full story ›

Source: The Drum