• The New York Times, Tuesday, July 26, 2011 12:21 PM

Despite reporting a 52% rise in second-quarter revenue, Netflix on Monday issued a weaker-than-anticipated earnings outlook. Along with what it considers a temporary slowdown in subscriber growth, the (increasingly online) content distributor blamed the outlook on negative consumer reaction to a recent price increase.

"The price adjustment, announced July 12, takes Netflix's DVD-by-mail service, which was a $2 add-on to its $8-a-month online streaming service, and makes it a separate $8 package," according to The New York Times. "For Netflix, the online streaming service, which remains $8, is growing much faster than DVD-by-mail. But some customers were outraged by what was effectively a 60% price increase for the combined service."

Netflix posted second-quarter revenue of $789 million -- up 52% year-over-year. For the third quarter, however, Netflix said it expected revenue to be $799.5 million to $828.5 million -- lower than previous projections.

Read the whole story at The New York Times »