Since content provider Netflix raised their rates and considered splitting its streaming and disc services, subscribers to the service have reacted with venom and vitriol. They’ve also resigned from the service in record numbers.
Netflix lost 800,000 U.S. subscribers in the third quarter, about 210,000 more than the company had projected, and the stock was off $32 in after-hours trading as a result.
The company’s subscriber metrics were released Monday along with quarterly earnings, which were better than analyst expectations. The company earned $62.5 million, up from $38 million a year ago, on revenue that rose 49 percent to $821.8 million.
The company’s shares had already lost 60 percent of their value since July when the company announced a large price increase for subscribers who want both streaming and DVDs. The stock took another hit after CEO Reed Hastings announced he’d split the company in two, calling one half Qwikster, but then reversed that decision days later.
Well, now that NetFlix is the sole legal provider of pre-2011 Power Rangers material I’m stuck with them for the time being. Still not happy with recent business decisions though.
Dropped them purely because I *cough*bitt*cough* more than anything else. I haven’t even watched anything on Hulu in probably 2 yrs. However, after this recent news, I know I mae the right choice.
A PR disaster but it’s still the same excellent service, just a bit pricier now. Will be interesting to see how it plays out.