User 1

Earthlink's Amazingly Bad Churn Rate (ELNK)

Mike, the original article is correct about the churn rate because churn is calculated off the entire customer base, not new subscribers that month. So every month the company loses 4.6% of its entire customer base. That's 55% per year. And yes, that's a stunningly bad number.

Netflix had the same problem; it also has high churn. But the number is falling, and it's adding a ton of new customers each quarter.