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 mcnabney on 9/15/2011 4:03:41 PM , Rating: 2
it is good that Netflix found a sucker to keep paying for lousy content in the meantime.

RE: Seriously...
By omnicronx on 9/15/2011 4:44:58 PM , Rating: 1
The leave and go find another provider that can still save you 50+ dollars a month if you were to forgo TV service which many people do..

Oh wait... There isnt one!

Netflix really had no choice here, not only do they need to secure new deals to make their catalog larger, but their olds ones ith the major studios are ending.(in which they are essentially paying a small portion of what the studios are going to ask for this time around)

People outside of the US should also be rejoicing, as seperating the streaming service from the DVD service all but guarentees more content coming to other countries as they will not have to worry as much about DVD licensing in other countries.

I personally don't use netflix because pretty much all I watch is HBO.. and sports, but I do see the value for many people.

My guess is this is merely a tiny blip for Netflix, come Q4 their userbase will begin to increase again as they expand into more markets and start offering more content.

As for Starz? Seems a little bit of an overreaction considering it accounts for less than %10 of its current viewship, which will no doubt be replaced by other contracts by the time February rolls around.

RE: Seriously...
By SilthDraeth on 9/16/2011 2:09:36 AM , Rating: 2
My guess is Amazon Prime will be taking a lot of Netflix customers. I used to do Netflix, now I do prime. Even though the video selection is smaller at the moment, I have no doubt that it will grow substantially.

Plus prime is only $80 a year, free two day shipping, and $3.99 one day.

So yea, that is where my money is going now.

RE: Seriously...
By Reclaimer77 on 9/16/11, Rating: 0
RE: Seriously...
By Denithor on 9/16/2011 12:02:04 PM , Rating: 2
You're totally oblivious aren't you?

Prime is their shipping program, they threw in free streaming videos as an added bonus.

RE: Seriously...
By retrospooty on 9/15/2011 6:05:41 PM , Rating: 2
"it is good that Netflix found a sucker to keep paying for lousy content in the meantime."

Sounds more like they found 22 million and a few bitter people like you cant handle it. They arent all suckers and they are all free to cancel at any time. Free country...

It depends on your use. I have been watching whole series on it and get way more use out of it than my $10 monthly pays for. Breaking bad, Nip Tuck, Dexter, Enterprise, all sorts of good series on there that I missed when on TV. When it dries up, I will cancel or put it on hold. No worries at all.

RE: Seriously...
By Dr of crap on 9/16/2011 8:48:12 AM , Rating: 1
While what you say I for the most part agree, what happens when they don't have anything new to watch???

That's my biggest bitch. There doesn't seem to be anything new being added streming wise. Yes they have these movies no one has heard of, and I don't want to see.

If that continues, there will be more leaving.

RE: Seriously...
By cruisin3style on 9/15/2011 7:21:37 PM , Rating: 3
i don't think paying $8 for something that would literally let you stream tv and movies for a month straight if you wanted makes you a sucker if it's stuff you like

I only have netflix streaming because i got in on a crazy deal for cheap access, but there are a lot of good tv shows on there and decent documentaries if that is your thing

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