Netflix Inc., the online and DVD film rental service, named David Wells to replace Chief Financial Officer Barry McCarthy. The shares fell in extended trading.
Wells, who served most recently as vice president of financial planning and analysis, will take on the new role as of Dec. 10, Los Gatos, California-based Netflix said today in a statement. McCarthy is leaving to explore positions outside the company, Netflix said.
Wells becomes CFO as Netflix is working to secure more content for its online streaming business. Last month, the company introduced its first Internet-only subscription in the U.S. at $7.99 a month. As of Sept. 30, two-thirds of the company’s 16.9 million subscribers had used its Web service.
Netflix dropped $6.85, or 3.6 percent, to $182.96 at 5:19 p.m. in extended trading. The shares, which have more than tripled this year, fell $3.66 to $189.81 at 4 p.m. in Nasdaq Stock Market trading.
McCarthy’s departure will not affect negotiations with content suppliers, Steve Swasey, a Netflix spokesman, said in a telephone interview today. McCarthy had planned to step down at the end of 2004 and decided to stay longer to help the company expand its business and fend off competitors, Swasey said.
The company’s contract, signed in 2008 with Liberty Media Corp.-owned Starz, lets it offer films from Sony Corp. and Walt Disney Co.