The Traderszone Network

Published in TZ Latest News 14 October, 2015 by The TZ Newswire Staff

Netflix blames weak U.S subscriber adds on new chip-based cards

Shares of Netflix, known for its original shows such as “House of Cards” and “Orange is the New Black”, plunged about 15 percent after the bell, before clawing back to trade down 2.4 percent. For Netflix, the switch meant that many of the older cards on its file no longer worked as the companies gave new cards to their customers, leading to “involuntary churn,” as Chief Executive Reed Hastings put it in a letter to shareholders. FBR Capital Markets analyst Barton Crockett said the issue around the chip cards is particularly confusing, given that these cards have been around for a bit.