Not long ago Netflix was a stock-market darling. The California-based firm transformed the video-rental market by renting out d vds through the post, and by streaming films and television shows over the internet. On October 23rd, though, it announced an 88% fall in third-quarter profits and its market capitalisation, $15 billion in July 2011, shrivelled to $3.3 billion. Netflix has been a victim of its own success. For about $8 a month, the company woos subscribers with programmes and films that normally require a pricey pay-TV subscription. Consumers love it: the average Netflix subscriber watches more than five TV shows and nearly three and a half films per week, according to a report from GFK Media, a market-research firm.
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