Netflix reports first drop in subscriptions

[MozartMan]

Netflix reports first drop in subscriptions (thanks to Blockbuster )

Netflix Inc., the largest online DVD rental company, on Monday reported its first-ever quarterly drop in subscriptions and cut forecasts for subscribers, revenue and profit for the year in the face of fierce competition from Blockbuster Inc.
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Chief Financial Officer Barry McCarthy told analysts on a conference call that Wall Street estimates for fiscal 2008 earnings growth were "excessively optimistic."
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Netflix has spent the last six months fending off a rising challenge from Blockbuster, which said it will spend $170 million this year to promote its Total Access plan. That allows subscribers to swap DVDs rented online at its stores for free and has become a powerful competitor to Netflix.

http://www.reuters.com/article/ousiv...37505820070724