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 4:21:39 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?

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