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

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: Seriously...
By SiliconJon on 9/15/2011 2:35:42 PM , Rating: 0
And after essentially removing the overhead of shipping me DVD's on my plan (as I preferred streaming only) they still didn't improve the selection. I put my account on hold for four weeks to see if the next month improved, but then found out putting your account on hold actually just cancels your account (wasting the remainder of the month's subscription fees which is a crock for anyone who wants to cancel as they won't let you cancel it at your billing date unless you actual make the cancellation on that very date) then autorenews it at your designated "unhold" date.

What a string of ripoffs, Netflix. Cya.

RE: Seriously...
By Reclaimer77 on 9/15/2011 3:16:08 PM , Rating: 5
they still didn't improve the selection.

Wtf, they CAN'T! Holy shit, do you think they have BILLIONS sitting in the bank? The fucking content providers have Netflix by the balls. Hell they offered Starz OVER 300 million dollars and it still wasn't enough.

Netflix would love to provide us with all the content we can eat, the problem is the bloodsucking content providers want to snuff Netflix out so we'll all be forced back to watching cable-fucking-TV for the rest of our lives!

You people complain about Netflix raising prices a few dollars then complain when there isn't enough content. Open your fucking eyes! It costs lots and lots of money to buy the rights to content, money that has to come out of profits.

I'm sorry for the language by my god you people piss me off sometimes. It's like you're totally oblivious to this issue and how the world works.

RE: Seriously...
By mcnabney on 9/15/2011 4:21:39 PM , Rating: 2
They didn't raise prices by a couple bucks. It could be up to a 60% price hike with no new benefit. In fact, by losing Starz the consumer will actually get much LESS.

And the deal with Starz was not about the contract, it was about setting Starz up as a premium add-on, like HBO or Showtime on cable. It wasn't about licensing. Netflix can still go directly to Disney and Sony to get the exact same content.

Currently, only cheap-to-license crap is on streaming. Which is great if you want to watch X-files re-runs, but lousy if you like movies released in the last two years.

The most popular movies of 2010 are NOT streaming:
The Social Network
Black Swan
The King's Speech
Tron: Legacy
Deathly Hallows part 1

It does stream Iron Man 2, and Tangled until February

RE: Seriously...
By cjohnson2136 on 9/15/2011 4:32:52 PM , Rating: 2
It's still under 20 bucks. I like the streaming for the old stuff and i get the dvds for the new stuff.

RE: Seriously...
By Reclaimer77 on 9/15/11, Rating: 0
RE: Seriously...
By Reclaimer77 on 9/15/11, Rating: -1
RE: Seriously...
By Dr of crap on 9/16/2011 8:54:21 AM , Rating: 2
Everyone has their own likes and dislikes. I don't care one bit if a move has won an award or not. I'll see it if it interests me.
So don't try and tell me if YOU like a show or movie.
I care not.
It's all subjective to the person watching.
I for one would not watch Arrested Development.

And after you watch this will there be anything new?
That's the question.

RE: Seriously...
By rburnham on 9/16/2011 9:27:11 AM , Rating: 2
Way to veer completely off topic.

RE: Seriously...
By bubbastrangelove on 9/16/2011 10:10:00 AM , Rating: 1
Haven't seen the other but there's about half a million people that disagree with you on "Black Swan". Go do Jägermeister bombs, keg stands and fist pumps with Michael Bay over Transformers III. That movie was great.

RE: Seriously...
By Bonesdad on 9/15/2011 5:17:10 PM , Rating: 1
dropped you back to 1. I agree with you for the most part, but your language is ugly and unnecessary.

RE: Seriously...
By NullSubroutine on 9/15/2011 5:30:14 PM , Rating: 2
You both know that when you comment you lose your rating, right?

RE: Seriously...
By wiz220 on 9/15/2011 4:29:29 PM , Rating: 3
I'll put ya back to 2, twas a good rant.

RE: Seriously...
By JohnWPB on 9/15/2011 5:40:47 PM , Rating: 2
Reclaimer77, I've been here on dailytech for quite a while now, but just recently registered. I sure with I knew how to raise the rating on your post, as I feel the exact way.

For all those that think Netflix is a ripoff, just go to Comcast and pay for their premium movie packages, and see how much you end up paying!

Plus they carry the same movies over and over for the next month.

Netflix might not be cheap, but it's a HECK OF A LOT cheaper than Starz, HBO, and all the rest!

RE: Seriously...
By ClownPuncher on 9/15/2011 6:27:58 PM , Rating: 2
Netflix is only cheap if you use it as much as you can. If you've been a member for years and can't find anything new to watch, $10 a month at RedBox is cheaper.

RE: Seriously...
By Reclaimer77 on 9/15/2011 7:43:41 PM , Rating: 3
Yeah and for only $80+ a month on cable TV you can catch the new "Dancing With the Stars" or HBO's endless reruns of movies!


RE: Seriously...
By Icebain on 9/16/2011 6:28:22 AM , Rating: 3
Don't forget Jersey Shore....the epitome example of the degradation of our society.

RE: Seriously...
By Dr of crap on 9/16/2011 8:55:53 AM , Rating: 2
DWTS is FREE over the air!

RE: Seriously...
By ClownPuncher on 9/16/2011 6:01:23 PM , Rating: 2
Why would you pay for cable TV? Outmoded concept. The argument that there is only Netflix or $80 month cable TV is ludicrous.

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings

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