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NET FLIX Free Resources
Netflix said its fourth-...
Netflix said its fourth-quarter marketing costs to attract new clients -- or, subscriber acquisition costs -- would be $34 to $38 per subscriber, down from a previous $40.
On October 1, Netflix issued third-quarter guidance that revealed a higher churn rate, and investors sent its shares tumbling nearly 15 percent the day after the announcement.
Netflix shares ended Nasdaq trading Wednesday off 84 cents, or 7.79 percent, at $9.49, but the news announcement came after the market ended trading.
While Wednesday's price was well off a post-IPO high of $18.19, it nevertheless was nearly double the recent low of $4.85, touched just after Netflix issued guidance in October.
In after-hours trading on the Island system, Netflix shares were up $2 at $11.75.
Still, analysts voiced caution.
Dennis McAlpine, a veteran media analyst who runs his own firm, McAlpine Associates, said the news was ``certainly a positive.'' However, along with the lower churn rate, he would have liked to have seen better growth in year-end subscribers.
``Going up 10,000 is nice, but it's not a Christmas present,'' he said.
Jones noted online competition is increasing from mass market retailers like Wal-Mart Stores Inc. and video specialist Blockbuster Inc.
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