It seems that despite all of the work by CEO Reed Hastings to stem the tide of fleeing subscribers, Netflix is still rapidly losing its subscribers. While the company has been scrambling to deal with the situation, it has lost over 800,000 subscribers; and some analysts suggest that this number could double or even triple in the next quarter.

One of the biggest and most surprising parts of the announcement when Netflix was going to split the company in two was that the new company would be getting into game rentals by mail. When Hastings announced that the split was not happening, it was assumed that game rentals were still on track to happen before the end of the year. We have now learned that game rentals (for the time being) have been shelved, which is good news for competitor GameFly, who was not looking forward to Netflix stepping into their video game by mail business.

Netflix is losing subscribers from both sides of its base, which means that both streaming and physical disc rental customers are fleeing. It is widely believed by analysts that that Netflix could eventually lose as many as 1.5 million streaming customers and 1.3 disc rental customers. Obviously, this isn’t good news for the company.

Netflix does seem to realize that they royally upset and alienated their subscribers with the announced pricing changes, coupled with the announcement of the company split. It is going to take time for the subscriber loss to run its course and for Netflix to repair its reputation with customers.

In the meantime, the company is focusing on securing new content for its streaming business. The company will double again next year what it spent this year to license streaming content.