DVD rent-by-mail outfit
was battening down the hatches Tuesday following word that
is preparing to kill its category.
The company, which shot up last night after it affirmed earnings estimates, was falling back in the premarket session after Wal-Mart lowered its monthly DVD subscription fee to $15.54 from $18.86. The price covers renters taking out two disks at a time.
After going as high as $25 last night, Netflix shares last crossed on Island at $22.90, down 10 cents from the 4 p.m. EDT close.
could also feel pressure on the news, though its shares hadn't done any premarket volume.
Monday night, Netflix said it expects to earn $3 million to $4 million, using standard accounting, for the second quarter ending June 30. It alsoexpects revenue of $62 million to $64 million, compared with its prior forecast of $60 million to $64 million.