Netflix Missteps Costs Company 800,000 Subscribers

First, announce a substantial price hike. Then, spin off the best-known part of your company and saddle it with a poorly thought-out name. Finally, amidst customer outcry, backpedal furiously, cancel the spin off, and apologize to anyone who will listen. Netflix followed this recipe for disaster to a “T”, and the bill for it has come due: the loss of 800,000 customers, slow to no growth in subscriber gains for the foreseeable future, and a company running in the red for a few quarters (with an additional expense incurred as they expand into Europe). Not all is doom and gloom, though; Netflix still holds 65% of the digital distribution market, their fees still compare favorably to cable, and competitors are few and far between.

For more, go to http://www.broadbandreports.com/shownews/Netflix-Loses-800000-Subs-to-Price-Hike-Bumbling-116738