Netflix loses Starz

[amarone]

Netflix shares are getting hammered today following their issuing revised (downwards) subscriber estimates.

Shares of Netflix NFLX slid more than 13% in early trades to $181 — putting the stock below the $200 for the first time since March. The shares are down more than 40% since peaking above the $300 mark in mid-July.

The drop came after the company issued a statement that reduced its subscriber forecast for the third quarter. The company expects about 1 million fewer subscribers for the period than it did in its initial forecast, given during its last earnings report on July 25.

The change includes the effect of a hike in rental fees that takes effect this month. Netflix expects the biggest change to the base of subscribers using only its mail-order DVD service; total domestic subscribers to the DVD-only plans are 27% lower than the company’s initial forecast of 3 million.