Hey, remember that brilliant idea Netflix had, when they essentially said, in the eyes of some subscribers, “seeing as how everyone but Blockbuster Video loves us, and we’re providing this awesome service that so many people enjoy of delivering films directly to their homes, as well as instant streaming to their TVs or computers, how about we totally ruin that by separating our streaming and rental services into separate accounts as a way to jack up prices?” Well, turns out Netflix isn’t going to forget it anytime soon, either—because it’s costing them a ton of money. Add to that the fact that they are losing the rights to stream Starz content (which includes films from Sony and Disney), and things are going to well for the company.
According to The AV Club:
“After Netflix sent shareholders a statement this morning that admitted it was seeing much lower numbers of subscribers than expected this quarter—and had seen far more cancellations than it had anticipated in the wake of the price hike—the company downgraded its annual estimates accordingly, leading several analysts to recommend that those shareholders cut loose and sell. The result was a nearly 15-percent drop in heavy trading for Netflix stock.”
Netflix is learning a valuable lesson—people don’t like to pay for awesome things, because we’re selfish and entitled, Netflix. What were you thinking, trying to charge people for an expensive service that you graciously provide? Silly company!
What do you think of the Netflix stock dive?