NetFlix Loses More Customers As Stock Plummets
It has been a disastrous few months for NetFlix. Their stock continues to fall as hundreds of customers a month have been dropping the service.
When NetFlix revealed their summer numbers it showed that their stock had dropped by 60%. Now their third quarter numbers are in and it has dropped even more, the stock is now down 27%, that's a drop of $32.01 so now the shares are worth well below $100. This is some troubling news for shareholders who expected a drop, but not this big. They are down 800,000 customers since the last tally of customers this summer.
According to Yahoo finance, NetFlix CEO Reed Hastings said that they were painted as an "evil corporation" but the nearly 60% price increases to their DVD packages was a necessary thing. Right now NetFlix still expects to gain subscribers through the fall, though it's unclear how. Let's not forget about the failed plan of Quickster, so it will be interesting to see what they lined up next. The companies saving grace right now will be their streaming content. That is where the expect to see biggest rise in customers.
I myself no longer get the DVD's by mail since it would have cost me over $17 a month, something I would have never spent at a video rental store. I do still do the instant movies and TV shows and as long as there is no price change I will probably stick with it.