Netflix Investors Bolt With Subscribers

Shares of Netflix stock tank after announcement of major customer loss.
2:08 | 10/26/11

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Transcript for Netflix Investors Bolt With Subscribers
The big trouble for Netflix becoming the rose like a rocket by bringing movies straight to our homes. Now customers are jumping ship the stock is in free fall and some are wondering if the company can survive thanks to a couple of terrible decisions. It is he's got a poetry has been following this dramatic story. Twelve billion dollars lost. 800000 customers gone and the stock price that has plummeted to a seven year old sometimes that's the thing that makes you great your speed. Can trip you up Netflix the company whose snazzy red envelopes help set off a meteoric rise in popularity and stop prize. Came crashing down Tuesday after a crushing earnings report the day before. -- Wall Street's version of the terminator. The trouble began last month after the company blind sided customers with the announcement that not only would prices be yelling up but the company would be breaking up. Netflix plan to spin off its popular dvd by mail service focusing instead on instant downloads -- online video viewing. The move soon proved to be a disaster. If it ain't broke don't fix it is a great thing for businesses to understand. Within days the company CEO acknowledged that He had made a mistake I just want to say again how sorry I am. Netflix isn't alone when it comes to blockbuster blunders. -- attempt to roll out a new formula in 1985. Quickly proved to be a recipe for disaster. And jet -- Valentine's Day mass in 2007. Left thousands of passengers stuck on grounded planes for hours. Netflix is now -- a problem where they don't have leadership consumers. Investors the market place. Doesn't know what the Netflix brand stands for today. -- I'll be back. Well that's a question that remains for Netflix. And analysts are equally concerned about the company's future forecast growth is expected to stall in the current quarter while subscribers will likely -- continued decline. Though there are those analysts say this is a buying opportunity for the stock George nonetheless quite a reversal of warning that.

This transcript has been automatically generated and may not be 100% accurate.

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