Posted on 10/24/2011 4:58:51 PM PDT by skully
SAN FRANCISCO (AP) — Netflix's video subscription service lost 800,000 customers in the third quarter —the biggest exodus in its history— even as its earnings rose 65 percent.
The losses were larger than management had previously warned. The unwelcome surprise, contained in financial results released Monday, was compounded by a forecast calling for millions of Netflix Inc.'s DVD-by-mail subscribers to cancel the service in reaction to dramatic price increase that took effect last month.
The bad news bruised already battered stock as the shares plunged by more than 26 percent.
(Excerpt) Read more at tuscaloosanews.com ...
Since postal rates are increasing, their rates had to go up.
We enjoy the service, especially the online streaming.
I only use the streaming.
I stayed with them for $7.99.
Netflix costs of maintaining customer accounts have gone down!
During the Qwikster fiasco, I dropped DVDs, but kept streaming.
Considering that they were setting up a separate website for DVDs, that they only had a few new titles in recent months, and that the Post Office is planning to close the regional mail center and move it 150 miles away and possibly end Saturday delivery, DVDs weren’t worth it.
Their streaming still is a good deal.
If they had only asked me for my opinion before jacking up their rates that high that fast. It was pretty much a no-brainer that they were going to hemorrhage customers like a cut artery.
By losing their STARs contract they are really under pressure to get more streaming material or the only customers they will have left will be people that enjoy the vast quantity of kids’ stuff they have. That being said, with every “upgrade” to their viewing software they make it tougher to limit access to mature material.
http://finance.yahoo.com/news/Netflix-loses-800000-US-apf-198318757.html?x=0
Netflix’s downfall leaves Hastings — the only CEO the company has ever had — in a precarious position.
Once regarded as one of the savviest leaders in technology and entertainment, Hastings has turned into a punching bag for frustrated Netflix customers and shareholders. Many of them are still befuddled by his recent decision making.
After Netflix’s higher prices kicked in on Sept. 1, Hastings amplified the outrage by outlining a plan to toss the DVD rental business onto a separate website called Qwikster. The split from the Internet streaming service got panned so badly that Hastings reversed course in less than three weeks.
“I am not a quitter,” Hasting said Monday after the AP asked him if would heed some investor calls for him to resign. “We made some mistakes, but I think our 10-year track record is extremely positive. We are going to focus on making this a great global streaming business. I am very excited about that.”
My understanding is that as soon as they bought Blockbuster they doubled the prices. But the consumers told them to go whistle Dixie for that.
I have no problem waiting a little longer to see DVD’s but the turn around by mail has slowed down considerably.
Me too, dropped them like a hot rock! 9 bucks ok, 19 no way:o)
We mostly do streaming, but still do hard copy for BlueRay.
We only get ONE at a time which is still pretty cheap.
Dish bought Blockbuster.
At $20 a month, I didnt pay much attention, but when I got the email saying that if we kept the service as is it would be $30 a month, that’s when we decided it was time to cut back. Bad timing on their part to raise prices so much with the economy doing poorly for many.
You sure about that?
I guess I am WRONG! Sorry
Thanks for the tip, my niece has (children's content) Netflix on PS3 for her two toddler girls. They have NO other television because it is crap. I'll tell her to keep an eye out.
My bill was 19.95 in January and 23.95 in September. I dropped by mail and then took a serious look at how few streaming videos they have and dropped that also.
I am one of 800,000.
It’s almost like they were Rick Perry
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