In July, Netflix said it expected to have 25 million customers by the end of the third quarter. But now the company says it will be more like 24 million, with estimates on each of its categories (DVD only, streaming, combo) taking a hit accordingly. Turns out people weren’t bluffing when they said they’d walk away from the rate increase Netflix rolled out over the summer.
From CNET:
“Despite the guidance revision, we remain convinced that the splitting of our services was the right long-term strategic choice,” Netflix said in a statement.
That may be, but the market seems very worried about the short term. Immediately after Netflix announced the price hike, Wall Street seemed elated and the company’s stock soared past $300. But since then, the customer backlash and Netflix’s recent struggles acquiring content have eroded investor confidence.
All I know is Breaking Bad is now on Netflix and I’m about to get sucked into it.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
