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Netflix Braces to Forgo Profit to Gain Customers

IN BRIEF / ENTERTAINMENT

March 03, 2005|From Reuters

Online DVD rental leader Netflix Inc. is prepared to sacrifice profit for as long as five years to win as many as 20 million U.S. subscribers and fend off major rivals such as Blockbuster Inc. and Amazon.com Inc., its chief executive said.

Netflix cut its price in October to $17.99 in anticipation of what CEO Reed Hastings believed was Amazon.com's imminent entry into the U.S. market.


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Los Gatos, Calif.-based Netflix shares fell 11 cents to $10.68 on Nasdaq.

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