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Netflix Loses 800,000 US Subscribers in Tough 3Q
TuscaloosaNews.com ^ | October 24, 2011 | AP

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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: netflix
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1 posted on 10/24/2011 4:58:57 PM PDT by skully
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To: skully
Netflix should raise prices to recoup the loss.
2 posted on 10/24/2011 5:05:37 PM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it. (plagiarized))
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To: skully

Since postal rates are increasing, their rates had to go up.

We enjoy the service, especially the online streaming.


3 posted on 10/24/2011 5:06:08 PM PDT by Mrs.Z
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To: Mrs.Z

I only use the streaming.
I stayed with them for $7.99.


4 posted on 10/24/2011 5:08:04 PM PDT by Aroostook25
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To: skully

Netflix costs of maintaining customer accounts have gone down!


5 posted on 10/24/2011 5:08:39 PM PDT by Revolting cat! (Let us prey!)
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To: skully

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.


6 posted on 10/24/2011 5:11:42 PM PDT by TomGuy
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To: skully

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.


7 posted on 10/24/2011 5:12:20 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Navy Patriot

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.


8 posted on 10/24/2011 5:12:37 PM PDT by USNBandit (sarcasm engaged at all times)
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To: skully

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.”


9 posted on 10/24/2011 5:16:01 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Mrs.Z

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.


10 posted on 10/24/2011 5:18:01 PM PDT by yldstrk (My heroes have always been cowboys)
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To: yldstrk
Are you sure of this? Blockbuster has earlier access to DVD’s and is offered through Dish Network. Its problem is many foreign (ie Ballywood) titles are missing.

I have no problem waiting a little longer to see DVD’s but the turn around by mail has slowed down considerably.

11 posted on 10/24/2011 5:26:19 PM PDT by Yulee (Village of Albion)
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To: Aroostook25

Me too, dropped them like a hot rock! 9 bucks ok, 19 no way:o)


12 posted on 10/24/2011 5:27:44 PM PDT by TheGunny
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To: yldstrk; Aroostook25

We mostly do streaming, but still do hard copy for BlueRay.

We only get ONE at a time which is still pretty cheap.


13 posted on 10/24/2011 5:34:03 PM PDT by Mrs.Z
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To: yldstrk

Dish bought Blockbuster.


14 posted on 10/24/2011 5:37:51 PM PDT by dangerdoc (see post #6)
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To: skully

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.


15 posted on 10/24/2011 5:38:26 PM PDT by psjones (u)
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To: dangerdoc

You sure about that?


16 posted on 10/24/2011 5:43:33 PM PDT by yldstrk (My heroes have always been cowboys)
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To: Yulee

I guess I am WRONG! Sorry


17 posted on 10/24/2011 5:48:08 PM PDT by yldstrk (My heroes have always been cowboys)
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To: USNBandit
with every “upgrade” to their viewing software they make it tougher to limit access to mature material.

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.

18 posted on 10/24/2011 5:51:08 PM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it. (plagiarized))
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To: yldstrk

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.


19 posted on 10/24/2011 5:52:34 PM PDT by american_ranger
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To: skully

It’s almost like they were Rick Perry


20 posted on 10/24/2011 5:53:23 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: skully

Apropos of nothing, Netflix has the worst commercials currently on radio. The fake game show meme is so tired and worn it is one of the few ads I turn off as soon as I hear it begin.


21 posted on 10/24/2011 6:22:28 PM PDT by muir_redwoods (Somewhere in Kenya, a village is missing an idiot)
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To: Navy Patriot
When I first got Netflix, I would stream it through my BluRay player and the only thing available was what I put on our "Instant Que" via my computer. We would rotate through 20 or so available titles.

With the "upgrade" now the interface on the BluRay player allows "surfing" of all their selections. You can controls on the ratings, but a lot of their kids stuff doesn't have a rating and get blocked if you put a "G only" restriction on your account. When you restrict, you restrict all your devices as well. I like the old setup better.

22 posted on 10/24/2011 6:35:32 PM PDT by USNBandit (sarcasm engaged at all times)
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To: yldstrk

I just double checked, Dish bought them on April 6th.


23 posted on 10/24/2011 6:41:50 PM PDT by dangerdoc (see post #6)
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To: Yulee

nope I am WRONG sorry


24 posted on 10/24/2011 6:52:56 PM PDT by yldstrk (My heroes have always been cowboys)
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25 posted on 10/24/2011 7:02:05 PM PDT by RedMDer (Forward With Confidence!)
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To: skully

Netflix also had a non-mentioned problem with Microsoft Silverlight that refused to allow many Mac users to watch streaming videos.

All it took for me was a call to netflix and the problem was solved which in turn caused me to return to Netflix.


26 posted on 10/24/2011 7:08:14 PM PDT by Randy Larsen
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To: skully

What is Netflix?

Roll Tide!


27 posted on 10/24/2011 7:27:40 PM PDT by logitech
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To: skully

Wow. From trading at 300 a share in July to 85 a share tonight, post earnings announcement. The market is a harsh mistress.


28 posted on 10/24/2011 7:28:53 PM PDT by 6SJ7 (I'm an AmeriCain!)
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To: american_ranger
I am one of 800,000.

So am I.

29 posted on 10/24/2011 8:15:26 PM PDT by dragonblustar (Allah Ain't So Akbar!)
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To: GeronL
It’s almost like they were Rick Perry

Heartless Netflix customers...

30 posted on 10/24/2011 10:03:34 PM PDT by DTogo (High time to bring back the Sons of Liberty !!)
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To: skully
The wealthy (defined by: US) were not contributing enough. So prices had to rise. Don't worry, customers will have nowhere else to go.

Is the genius that hatched that plan still working for them?

And thanks for reminding me. I took my account off 'vacation' and canceled.

31 posted on 10/24/2011 10:05:10 PM PDT by CT
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To: skully

Well, you know, doubling your prices tends to do that.

I’m leaving as soon as I find that stupid disc lost somewhere in my room.


32 posted on 10/25/2011 1:21:34 AM PDT by I still care (I miss my friends, bagels, and the NYC skyline - but not the taxes. I love the South.)
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To: 6SJ7

Are we sure that mac daddy is not involved in this ripoff?


33 posted on 10/25/2011 7:40:32 AM PDT by chiefqc
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To: american_ranger
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.

We dropped it when they jacked up the rates, but then broke down and bought a Roku box and renewed our service with them. I love it - I travel a lot and watch shows and movies on my laptop or iphone all the time, plus at home we're into Downton Abbey, Midsomer Murders, and Red Dwarf, as well as other Brit programming I was introduced to while over there. So what, they don't have new releases - they've got great documentaries including ALL of the American Experience shows as well as classic TV and that's enough to keep wifey and me occupied for a long time. We have Dishnetwork too, and with the Roku box we have Crackle and other options we haven't even had time to start exploring yet. $80 for the box and $8 a month is fine with me.

34 posted on 10/25/2011 8:27:56 PM PDT by onehipdad (Who is John Galt?)
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To: ADemocratNoMore; advertising guy; aft_lizard; AJMaXx; Alice in Wonderland; american colleen; ...
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35 posted on 10/28/2011 12:39:52 AM PDT by Las Vegas Dave (The DemocRATic party preys on the ignorant!)
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To: ADemocratNoMore; advertising guy; aft_lizard; AJMaXx; Alice in Wonderland; american colleen; ...

http://www.tvpredictions.com/netflixstock102611.htm

Netflix’s stock plunged 35 percent yesterday after the company reported that it lost 800,000 subscribers in the third quarter due to a price increase.

The one-day freefall means that Netflix’s stock has now lost roughly 75 percent in the last four months; the company lost 40 percent in the four months after it announced a new pricing plan in July.

At yesterday’s close, Netflix’s stock stood at $77.37, compared to July when it was trading over 300.

The company, which had predicted that it would lose 600,000 subs in the third quarter, finished the quarter with 23.8 million subscribers. However, Netflix says more losses could be coming in the fourth quarter and many analysts and investors evidently agree.

Some industry observers yesterday were questioning whether Netflix CEO Reed Hastings, the architect behind the new pricing structure, could stay on if the company’s fortunes don’t change and soon.

“The company no longer earns the benefit of the doubt,” Wall Street analyst Tony Wible told Reuters yesterday. “Netflix has revealed a lot about how it cares about investors and customers through its actions. I think it would be wrong to say it cares about those people.”

The company’s wobbly fortunes began in July when Netflix announced a new pricing structure for streaming and disc rentals. The company now does not offer its popular $9.99-a-month plan allowing subscribers to stream videos and rent one DVD at a time. Instead, you now have to pay $15.98 a month to keep the combination of the unlimited streaming option and the one DVD at a time rental plan.

Your other choice is to pay $7.99 a month for the one DVD at a time plan (plus an extra $2 a month for Blu-ray rentals) OR $7.99 a month for the unlimited streaming plan. But you can not use both features with that option.


36 posted on 10/28/2011 12:43:40 AM PDT by Las Vegas Dave (The DemocRATic party preys on the ignorant!)
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To: Las Vegas Dave

I went to streaming only for now. They pissed me off too and I have been renting DVD’s from them since they started back in the 90’s.


37 posted on 10/28/2011 1:45:21 AM PDT by I Drive Too Fast
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To: skully

I really wanted to use the streaming (and that’s what Netflix wants you to do too), but I found their selection of titles so poor that I had trouble finding something to watch.

So when Netflix doubled their prices, I dropped them. I now use VUDU to stream PPV movies occasionally. The VUDU prices are a bit high, but OTOH, you can actually choose recent-run movies that Netflix simply does not offer. I am probably paying more money some months with VUDU, but I am watching the movies that I want to watch, and I’m only paying when I do watch - not a monthly fee.

The VUDU app runs in both my Internet-enabled TV and Blu-Ray player. It is really solid, and streams HD content with very high quality and no interruptions. I also tried the Amazon video player app, but found that it bombed out 5 or 6 times every time you watch a movie, so for now I am sticking with VUDU.


38 posted on 10/28/2011 2:25:58 AM PDT by Scutter
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To: Las Vegas Dave

The CEO has his head up his ass. Red Box just raised its price to $1.20, saw the headline around here, can’t find it. But weird coincidence, huh?


39 posted on 10/28/2011 3:39:47 AM PDT by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
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To: Las Vegas Dave
Dave--

Aren't all the suits thinking that their customers ALL have access to great internet connections, especially for home use?

I have expensive, slow satellite streaming with a cap on how much I use. Am I so very alone? Now the kids at the university in the next town have fabulous, cheap internet. But they pirate all their movies!!

So I have always thought Netflix had a great business model. I put my used DVD in the mailbox on Tuesday at 4:30 and get a notice Wednesday morning that the newest is on the way. I marvel at how this works. It's great.

It always me to choose blu-ray for an action movie and pay a little extra, and get the regular kind of DVD for other movies and not pay extra. Does streaming do that?

Look at their library of movies! They even have lots of gay and lesbian stuff for the huge audience that wants it. True, they don't have "Media Malpractice" or "Fireproof" or a lot of conservative-interest movies...but that's because there are so few conservatives. (They may have the two movies I mentioned, but just try to rent them...)

Their bias is a problem for me. And I think that's part and parcel of the mindset of Netflix that caused the executives to SCREW IT UP so royally. They're progressives and progressives are stupid.

Listening, CEO?

Fire the whole top brass, get somebody smart who didn't go to Harvard and I think Netflix will be fine. I invested in Netflix in the early stages and cleaned up.

40 posted on 10/28/2011 5:28:07 AM PDT by Mamzelle
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To: muir_redwoods

Heh. Netflix radio ads are among the few I enjoy. Stupid, yes, but the nonsense is to surreal to not wait for and grin at. Right up there with AccountTemps.


41 posted on 10/28/2011 6:27:38 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: SunkenCiv

Yeah, RedBox’s primary blame is on debit card fees.

I thought the Obama & Co. just REDUCED debit card fees.


42 posted on 10/28/2011 6:30:02 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: ctdonath2

Repetitious, boring and dumb ads, IMHO And they obviously don’t sell the product.


43 posted on 10/28/2011 6:55:07 AM PDT by muir_redwoods (Somewhere in Kenya, a village is missing an idiot)
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To: skully

Netflix streaming is still a much better value than having cable TV, in my opinion, but they really did screw up the way they did their changes. First of all, if they’d simply announced a modest price increase on the typical service (even 20%), it wouldn’t really have been a big deal to customers ($2/month). They already had a cheaper streaming-only option available, so they could have promoted that and nobody would have minded, and people like me probably would have migrated over to that eventually anyway (I hardly ever watched the DVDs... I’d hang on them for weeks). The ‘Quickster’ thing was unspeakably dumb, basically a slap in the face to the customers who *were* willing to pay 60% more for DVDs, and with a name almost identical to an old Amway scam.

I’m keeping Netflix streaming because it’s cheap and I use it all the time. If Amazon Prime keeps getting more programming, I might be tempted to switch, but only if Amazon lets me stream through a Wii like Netflix does.


44 posted on 10/28/2011 7:15:31 AM PDT by Sloth (If a tax break counts as "spending" then every time I don't rob a bank should be a "deposit.")
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To: Jack Hydrazine

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.
+++++++++++++++++
I’m strictly a Netflix streamer so none of this affected me at all.

But I’m really curious where those 800,000 people went to find a better deal than what they had at Netflix even with the higher pricing.

Anybody know?


45 posted on 10/28/2011 8:24:51 AM PDT by InterceptPoint
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To: Jack Hydrazine

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.
+++++++++++++++++
I’m strictly a Netflix streamer so none of this affected me at all.

But I’m really curious where those 800,000 people went to find a better deal than what they had at Netflix even with the higher pricing.

Anybody know?


46 posted on 10/28/2011 8:24:51 AM PDT by InterceptPoint
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To: skully

I have way too much invested in my entertainment system to watch streaming video via my crappy (rural) internet connection. No interest whatsoever.

Even with the best connection available, streaming is no match for a properly recorded BluRay on a system that is good enough to appreciate it. Especially the audio.

By going to disc only, I am actually paying slightly less than I was before, and not paying for streaming.


47 posted on 10/28/2011 8:45:54 AM PDT by moonhawk ((Broken)Heartless Hobbit for Sarah...)
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To: skully

I’m sticking with Netflix... sure they made some mistakes, but they also corrected them. I have always rec’d 100% of the time excellent customer service from them, and the one time I rec’d a scratched disk, they bent over backwards to make me happy.

I also LOVE my instant streaming!!


48 posted on 10/28/2011 9:39:00 AM PDT by diamond6 (Check out: http://www.biblechristiansociety.com/home.php and learn about the faith.)
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To: yldstrk

Netflix owns Blockbuster?!


49 posted on 10/28/2011 9:40:49 AM PDT by diamond6 (Check out: http://www.biblechristiansociety.com/home.php and learn about the faith.)
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To: skully

Anyone that bitches and moans about paying $8 per month for the Netflix streaming service is an idiot. It is absolutely best deal out there- by far.


50 posted on 10/28/2011 9:28:39 PM PDT by WackySam (Obama got Osama just like Nixon landed on the moon.)
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