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Has Netflix Just Alienated 1/3 of Customers?

Netflix has gotten crushed since CEO Reed Hastings decided to change pricing and separate the DVD business.

In fact, Magid Advisors president Mike Vorhaus says the company stands to lose 30% of its subscribers after bungling the price change.

“This has implications for Netflix’s margins and also re-emphasizes the importance of improving content selection among streaming plans,” says Vorhaus “The firm has consulted the communications industry for 50 years and surveyed more than 1 million consumers for various customers this year alone.”

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Trader disclosure: On Sep 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss is short BTU; Weiss is short CNX; Weiss is short TBT; Weiss is long QCOM; Weiss is long EUO; Weiss is long SDS; Weiss is long CDX; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long CVI; Terranova is long AXP; Terranova is long EMC; Terranova is long WFM; Terranova is long AMZN; Terranova is long PCP; Terranova is long CF; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Finerman owns HPQ; Finerman owns YHOO; Finerman owns AAPL; Finerman owns BAC leaps; Finerman owns IBM and short calls; Finerman is long JPM; Finerman owns MSFT; Finerman owns ORCL; Finerman’s firm owns AAPL short calls; Finerman’s firm owns BAC; Finerman’s firm owns GOOG; Finerman’s firm owns JPM leaps and long puts; Finerman’s firm owns MSFT and short calls; Finerman’s firm owns ORCL; Finerman’s firm owns IWM; Finerman’s firm owns MDY; Finerman’s firm owns SPY; Cortes is long SO; Cortes is long CAG; Cortes is long Treasuries; Cortes is short EUR; Cortes is short AUD; Cortes is short S&P Futures; Stutland is long TLT; Stutland is long CSCO and has short calls; Stutland is long IBM and has short calls; Stutland is long INTC and has short calls; Stutland is long QCOM and has short calls; Stutland is long GLD and holds long option positions in calls and puts; Stutland is long TLT and has short calls and short puts; Stutland is long NLY and has short put spreads ; Stutland’s firm is a market maker of VIX

For Mike Vorhaus
**No disclosures

For Jim Iurio
Iuorio has long calls in VXX

For Rob Enderle
HPQ is a client of Enderle Group

For Jeff Saut
Raymond James is market maker of LINE

CNBC.com with wires.