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Print 56 comment(s) - last by gmanthebrave.. on Sep 28 at 12:59 PM


  (Source: blogspot.com)
U.S. subscriber predictions have been cut from 25 million to 24 million

Netflix has had a lot of troubles since it began making big changes to its service. It first increased the prices of its plans back in July, which outraged customers to the point of jamming Netflix's customer service phone lines.

To make matters worse, Starz decided not to renew its contract with the company because Netflix wouldn't make subscribers pay a premium price for Starz content. This means Netflix will lose Disney and Sony-related programming come February.

Now, Netflix is 
cutting its third-quarter forecast by 1 million U.S. subscribers, and has realized the full extent of customer wrath since raising plan prices by 60 percent as well as splitting DVD plans from streaming plans. 

"We know our decision to split our services has upset many of our subscribers, which we don't take lightly, but we believe the split will help us make our services better for subscribers and shareholders for years to come," said Netflix. 

The company is now predicting 24 million U.S. subscribers by the end of the third quarter, which has been reduced from a previous forecast of 25 million. Originally, Netflix predicted that 3 million subscribers would move to the DVD-only plan while 22 million would transfer to the streaming-only plan. Now, these predictions have fallen to 2.2 million DVD-only subscribers and 21.8 million streaming-only subscribers. 

"Clearly, if the third quarter is slipping, there's risk to the fourth quarter, as the year-ago period was a time when everything went right for Netflix," said Barton Crockett, a Lazard Capital analyst.

Despite the cuts in U.S. subscriber predictions, Netflix has maintained its third-quarter financial forecast and international subscriber outlook. 

Netflix has said that it needed to raise prices in order to 
afford the hundreds of millions of dollars it takes to purchase licensing rights from movie studios and television networks. These licenses help Netflix build its digital library. 



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RE: One in a million
By bitterman0 on 9/15/2011 2:31:28 PM , Rating: 2
Same here.

While presently it doesn't hurt Netflix in any way (the loss from 1M customer base shrink is much less than 60% service price increase), I think that people should exercise their wallet voting rights more often.

It's just that many got used to cable TV operators year after year rising subscription fees without rhyme or reason, a small (in absolute dollar value, not the ratio) increase in price from Netflix does not even register as a noteworthy event. Oh well. Perhaps, when Netflix ends up charging $100 for their monthly subscription after a couple-three years of steady price increases, people will notice.


RE: One in a million
By gmanthebrave on 9/28/2011 12:59:06 PM , Rating: 2
I look forward to when streaming is offered to non-DISH customers because then the media will really have something to talk about. Netflix’s folly is DISH Network’s gain and only time is needed to build the capitol in Blockbuster for the right positioning. Right now I’m benefiting having an employee 722 receiver because the streaming for the Blockbuster Movie Pass will be right to my receiver starting October 1st. http://bit.ly/qhINTW


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