Stone_Cold_Sisko wrote:
Snaploud wrote:
Ar-Pharazon wrote:
New article on Yahoo.
The gist is, Netflix has lost 600,000 customers since June. Apparently far more than they had anticipated.
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From the link:
So, their subscriber base dropped by less than 2.5%, and their revenue increased by between $10 and $15 million. I've got to say: that really doesn't sound all that bad for such a major pricing change. |
Except for the fact that their loss of customers were worse than they projected, for which the end result was a sizeable drop in their stock - the perils of being a public company. One article said 20% (!). If you calculate the $$$$ value of that 20% drop.... it's kind of eye opening. Also as I understand it the price increases happened late in the quarter so the entire quarter's numbers aren't representative. |
Don't get me wrong. They screwed up in the expectations game, but that doesn't change the fact that a major pricing change led to a relatively small drop in customers and an increase in revenue. As noted up-thread, the situation could grow worse, but, at the moment, it seems their biggest problems have more to do with investor panic than customer loss.