Netflix Lost More Customers Than Expected With Recent Price Hike

Posted by on September 16, 2011 at 11:08 am

NetflixLook, I kind of get it, content providers want more money so Netflix ups the price. But with technology we all see things as only getting cheaper and not more expensive so when you start out with a high price tag then drop to $10/month you can’t expect people to be willing to pay 60% more for the same thing they were just getting.

By the end of September Netflix is expected to be 600,000 subscribers less than it was. Ouch. They could lose even more next month when other subscribers automatically get charged the higher rate. I still haven’t cancelled my service but I did drop down to the streaming only plan. This news didn’t sit to well with investors and made the Netflix stock drop $39.46 to close out Thursday at $169.25/share. Today the stock is still hurting, I’m thinking they will lose another $10/share. Some good news for Netflix is that even though it’s losing tons of subscribers they are expected to bring in $10 – $25 million more for the quarter.

[via: AP]

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