backtop


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. 



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

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.


"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki