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Old September 17 2011, 07:04 PM   #247
Snaploud's Avatar
Location: Massachusetts, USA
Re: Netflix shoots itself in the foot... aka no more free streaming

Stone_Cold_Sisko wrote: View Post
Snaploud wrote: View Post
Ar-Pharazon wrote: View Post
New article on Yahoo.

The gist is, Netflix has lost 600,000 customers since June. Apparently far more than they had anticipated.
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.
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