Netflix Inc. this week said it lost 810,000 subscribers in the third quarter post a 60 percent price hike in July that left members disgruntled.
From Sept. 30, Netflix U.S. subscribers totaled 23.79 million, down from 24.6 million the quarter prior.
The company cited higher-than-expected cancellations by long-term members.
Netflix posted a profit of $62.5 million in the quarter, an increase from $38 million one year prior.
However, it said revenue and profits in the fourth quarter will be lower than initial forecasts, but added it would remain profitable.
As a result, company stock plunged 26 percent Mon. in after-hours trading to $87.48.
The company in Oct. stopped plans to split off its DVD business into an entity called Qwikster.
Netflix CEO Reed Hastings said the company will keep DVD rentals and streaming at Netflix to allow customers to maintain access at one website.
The company in Sept. said it would relay its DVD rental business to Qwikster in order to allow the DVD business to grow and be marketed independently.
The company did not say if it would integrate video game rentals to Netflix.
Netflix currently offers the ability to stream movie and TV content to all three consoles.
The company in July announced streaming functionality for the Nintendo 3DS handheld.
Netflix, CBS Corp. and Warner Bros. Television Group this month announced a new partnership to allow Netflix to stream TV programming from The CW network to members.
Under the four-year licensing agreement, U.S. members of Netflix can watch all prior seasons of The CW programming from the current schedule to the 2014 – 2015 season.