Netflix has cut its subscriber projections by one million members in the face of its decision to split up its streaming and DVD plans, the company announced today. The Netflix exodus is expected to occur by the end of the company’s fiscal quarter, with the new subscriber level adjusted from expectations in July.

Netflix wrote a letter to its shareholders about the lowering of its projected counts of streaming-only subscribers by 200,000, and its DVD-only subscribers by 800,000. This would represent a 4 percent decrease in its current 25 million customer base, and a monthly revenue loss of at least $8 million.

Customers subscribing to both the $7.99 streaming plan and one of the DVD rental plans are expected to hold steady at 12 million subscribers, while streaming-only numbers are projected at 9.8 million and DVD-only at 2.2 million. “We know our decision to split our services has upset many of our subscribers, which we don’t take lightly,” says the letter, signed by Reed Hastings, CEO, and David Wells, CFO.

However, the company continues to stand by its maligned decision to split its streaming and DVD services. The letter states the company intends to “license more streaming content and thereby improve our streaming service even more,” and that the split will help improve global streaming services “more rapidly” now that it they are no longer tied to the domestic dealings with DVDs. “We believe this split will help make our services better for subscribers and shareholders for years to come,” reads the letter.