AfterDawn: Tech news

Netflix lost 800,000 subscribers this quarter

Written by Andre Yoskowitz (Google+) @ 24 Oct 2011 16:50 User comments (16)

Netflix lost 800,000 subscribers this quarter In September, Netflix outraged subscribers by announcing that they would be splitting the DVD-by-mail and streaming services of their company. The new company for DVDs, called Qwikster, would have its own login portal and would require subscribers to log in to both Netflix and Qwikster if they want to change their respective queues.
The move came on top of the already unpopular decision by Netflix to raise prices on those that wanted both services, from $9 to $16. Fortunately, the company decided to kill of the idea of Qwikster, but it was already too late and the damage had been done.

During today's quarterly earnings report, Netflix says they lost 800,000 subscribers, finishing the quarter at 23.8 million. The company had expected to stay above 24 million.

While the company expected a drop in mail customers, streaming customers took a hit also, down to 21.45 million from 21.8 million.

CEO Reed Hastings admitted the price rise "hurt our hard‐earned reputation, and stalled our domestic growth." More shockingly, the company says all its expansions will force earnings into the red in the Q1 2012.

Netflix's stock, which reached an all-time high in July at $305 per share, is now trading at $85 per share following the report.

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16 user comments

124.10.2011 17:52

Bye Bye NETFUX, you SUCK and that is why we have all left you.

With the economy being down, you raised your prices twice within a year... real smart move, who was genius behind that idea.

Oh yeah, another smart idea with the Qwikster thing... FAIL

224.10.2011 18:16

The CEO of this company is a fecking idiot to expect anything else. In Ireland he would be called a fucking numpty!

324.10.2011 22:35

I am half-tempted to buy stock...

424.10.2011 22:52

Originally posted by KillerBug:
I am half-tempted to buy stock...
lol! That thought crossed my mind as well. Last spring I cancelled my subscription because I was in between houses. Now that I've moved into me new home I can say I'm in no rush to start up my subscription again. With all the alternatives out there online for free why bother? So screw you Netflix, and TV providers.

524.10.2011 22:58

hahahahahaha, wishful thinking bites its ass


Being nice always has its own consequences

625.10.2011 0:06

Originally posted by KillerBug:
I am half-tempted to buy stock...
Never catch a falling knife!

725.10.2011 0:10

Ha, I wonder who will buy Netflix? It would be really funny if Dish did buy it to make it better but there's no point since there's not much customers and they already own Blockbuster. However Blockbuster Express is own buy a different company according to Dish.

825.10.2011 11:19

Netflix sucks, I can use Crackle for free, or download whatever i want to watch and burn it to dvd. The only ones who benefit from netflix are people who don't leave the house or don't have a modern dvd player with Crackle.

This message has been edited since its posting. Latest edit was made on 25 Oct 2011 @ 11:19

925.10.2011 11:39
The Future
Unverified new user

That's why there's "MIXVID" free movies free games free music no hassle.

1025.10.2011 12:46

Originally posted by KillerBug:
I am half-tempted to buy stock...
Good thing you didn't buy some on Monday!

Monday $119 and Tuesday $75. Ouch. If it heads down into the 50's I'll probably jump in.

1125.10.2011 15:21

A great example of customers speaking with their wallets. Now only if people did this to some of the other companies with bad policies/prices.

1228.10.2011 10:10

Goodbye Greedy NETFLIX. Hello Blockbuster

1328.10.2011 12:38

Almost dropped Netflix but since they nixed the Quikster idea I think I'll stick around awhile longer. How much longer I don't know.

Sure hope some folks bought Netflix stock a few years ago, watched it climb to to around $250 per share then sold it before the stock started falling. At least they could make some profit on Netflix's mistake!!

1428.10.2011 15:41

Originally posted by g_slide:
Bye Bye NETFUX, you SUCK and that is why we have all left you.

With the economy being down, you raised your prices twice within a year... real smart move, who was genius behind that idea.

Oh yeah, another smart idea with the Qwikster thing... FAIL
Not to worry. Obama just announced a trillion dollar bailout for Netflix. All is good.

1528.10.2011 22:07

Originally posted by BigDDub:
Originally posted by g_slide:
Bye Bye NETFUX, you SUCK and that is why we have all left you.

With the economy being down, you raised your prices twice within a year... real smart move, who was genius behind that idea.

Oh yeah, another smart idea with the Qwikster thing... FAIL
Not to worry. Obama just announced a trillion dollar bailout for Netflix. All is good.
Your not serious? Thats a joke right?

1628.10.2011 22:45

Originally posted by bratcher:
Originally posted by BigDDub:
Originally posted by g_slide:
Bye Bye NETFUX, you SUCK and that is why we have all left you.

With the economy being down, you raised your prices twice within a year... real smart move, who was genius behind that idea.

Oh yeah, another smart idea with the Qwikster thing... FAIL
Not to worry. Obama just announced a trillion dollar bailout for Netflix. All is good.
Your not serious? Thats a joke right?
Yeah he was joking, it was only $500 billion.

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