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Higher Netflix prices equals fewer subscribers
Horror show: Netflix losing more customers than expected on price hike, stock plunges 19 pct
FILE - In this April 22, 2011 file photo, the logo of Netflix is displayed at the headquarters in Los Gatos, Calif. Netflix is lowering its U.S. subscriber expectations for the third quarter because of customer losses relating to a split of its DVD and streaming options. (AP Photo/Paul Sakuma, File)
Michael Liedtke, AP Technology Writer, On Thursday September 15, 2011, 5:09 pm EDT
SAN FRANCISCO (AP) -- Netflix's decision to raise prices by as much as 60 percent is turning into a horror show.
The customer backlash against the higher rates, kicking in this month, has been much harsher than Netflix Inc. anticipated. That prompted management to predict Thursday that the company --the largest U.S. video subscription service-- will end September with 600,000 fewer U.S. customers than it had in June.
It will mark just the second time in 12 years that Netflix has lost subscribers from one quarter to the next. The last downturn occurred during 2007 when Netflix lost a mere 55,000 from March through June.
The current hemorrhaging exacerbated fears that Netflix is losing the magic touch that increased its stock 10-fold in the three years leading up to the company's July 12 announcement about its higher prices.
Since then, Netflix has turned into Wall Street's equivalent of a box-office flop. Its shares plunged $39.46, or about 19 percent, to close at $169.25 on Thursday, leaving Netflix's stock price more than 40 percent below where it stood before the company unveiled the higher prices. The cost to shareholders so far: more than $6 billion in paper losses.
It could get uglier if the worst-case scenarios play out. Netflix suffered another setback earlier this month when Starz Entertainment ended talks to renew the licensing rights to a key part of Netflix's video library for streaming over the Internet. The fallout from that decision will hit in March when Netflix will no longer be able to stream the popular mix of recently released movies and TV shows that it got from Starz, raising the specter of another onslaught of customer defections.
"Netflix isn't looking like it's as good a deal because their prices are getting higher and their content isn't getting any better," said Wedbush Securities analyst Michael Pachter, who thinks the company's shares could fall as low as $110. "It's like they have taken the beef away from the buffet."
The customer exodus still hasn't convinced Netflix to reverse its course and lower its prices as it did in 2007 when it was engaged in a cut-throat battle with Blockbuster Inc. In announcing its lowered subscriber forecasts Thursday, Netflix emphasized it consider its new prices to be "the right long-term strategic choice."
The new pricing structure was driven by Netflix's desire to build up its service that streams video over high-speed Internet connections, even at the risk of hurting the DVD-by-mail rentals that used to be its main business. Netflix management believes the convenience of Internet video is the main reason that it has added 17 million U.S. subscribers during the past three years, establishing the company as a major player in the entertainment industry.
As the streaming service took off, Hollywood studios and other video distributors such as Starz have been demanding higher fees for the licensing rights to their content -- a trend that caused Netflix to dig deeper into its subscribers' wallets.
Even with fewer subscribers, Netflix expects to bring in $10 million to $25 million more from its customers than during the July-September period than it did April-June.
Netflix revenue won't keep rising, though, if more subscribers flee. Pachter thinks that could still happen because some customers won't be billed at the higher rates until the end of the month.
Besides being more expensive, Netflix's new pricing structure is also more complicated for subscribers who want to stream and rent DVDs from the service.
Until Sept. 1, Netflix offered plans that bundled DVD rentals and unlimited video streaming for as little as $10 per month. Those options are now sold separately, resulting in a cost of at least $16 per month for people who want streaming and DVDs. Having both choices is appealing because Netflix's streaming library primarily consists of old TV shows and movies, leaving DVDs as the main way to see recently released films.
To hold down costs in a tough economy, millions of Netflix customers are either limiting their subscriptions to a streaming-only or DVD-only plan. Other customers are canceling their accounts to protest the new pricing scheme. Those canceling are following through on threats that were made on Facebook and Netflix's own blog after the higher prices were announced.
Despite the vitriolic reaction, Netflix CEO Reed Hastings still thought the company would be able to add subscribers. In late July, he issued a forecast that indicated Netflix would end September with 25 million U.S. subscribers, up from 24.6 million in June. That prediction was lowered Thursday to 24 million. The revision mostly reflects Netflix's expectation that it will have 800,000 fewer DVD-only subscribers than it previously thought.
Many of the people no longer renting DVDs from Netflix will get their discs elsewhere. That could be a boon for Redbox, which rents DVDs for $1 per night through 33,330 kiosks in supermarkets and other retailers, and Blockbuster, which still has 1,500 U.S. stores after emerging from bankruptcy protection under the ownership of Dish Network Corp. Investors are betting Redbox will be the main beneficiary; the shares of Redbox owner Coinstar surged $3.33, or more than 7 percent, to close at $48.55 on Thursday. Dish Network's shares edged up 11 cents to $25.82.
This could be an opportune time for would-be rivals to attack Netflix's streaming service too, BTIG Research analyst Richard Greenfield wrote in a Thursday blog post. Internet retailer Amazon.com Inc. launched a free streaming service for subscribers to its two-day shipping service earlier this year. Greenfield and other analysts believe Google Inc., already the owner of YouTube, is eager to expand its Internet video offerings to include more movies. One way Google could achieve that would be to buy Hulu.com, which has been put up by for sale by the television network owners that supply its video content.
"Netflix made a bad move, raising prices as much as they did," Pachter said.
Horror show: Netflix losing more customers than expected on price hike, stock plunges 19 pct
FILE - In this April 22, 2011 file photo, the logo of Netflix is displayed at the headquarters in Los Gatos, Calif. Netflix is lowering its U.S. subscriber expectations for the third quarter because of customer losses relating to a split of its DVD and streaming options. (AP Photo/Paul Sakuma, File)
Michael Liedtke, AP Technology Writer, On Thursday September 15, 2011, 5:09 pm EDT
SAN FRANCISCO (AP) -- Netflix's decision to raise prices by as much as 60 percent is turning into a horror show.
The customer backlash against the higher rates, kicking in this month, has been much harsher than Netflix Inc. anticipated. That prompted management to predict Thursday that the company --the largest U.S. video subscription service-- will end September with 600,000 fewer U.S. customers than it had in June.
It will mark just the second time in 12 years that Netflix has lost subscribers from one quarter to the next. The last downturn occurred during 2007 when Netflix lost a mere 55,000 from March through June.
The current hemorrhaging exacerbated fears that Netflix is losing the magic touch that increased its stock 10-fold in the three years leading up to the company's July 12 announcement about its higher prices.
Since then, Netflix has turned into Wall Street's equivalent of a box-office flop. Its shares plunged $39.46, or about 19 percent, to close at $169.25 on Thursday, leaving Netflix's stock price more than 40 percent below where it stood before the company unveiled the higher prices. The cost to shareholders so far: more than $6 billion in paper losses.
It could get uglier if the worst-case scenarios play out. Netflix suffered another setback earlier this month when Starz Entertainment ended talks to renew the licensing rights to a key part of Netflix's video library for streaming over the Internet. The fallout from that decision will hit in March when Netflix will no longer be able to stream the popular mix of recently released movies and TV shows that it got from Starz, raising the specter of another onslaught of customer defections.
"Netflix isn't looking like it's as good a deal because their prices are getting higher and their content isn't getting any better," said Wedbush Securities analyst Michael Pachter, who thinks the company's shares could fall as low as $110. "It's like they have taken the beef away from the buffet."
The customer exodus still hasn't convinced Netflix to reverse its course and lower its prices as it did in 2007 when it was engaged in a cut-throat battle with Blockbuster Inc. In announcing its lowered subscriber forecasts Thursday, Netflix emphasized it consider its new prices to be "the right long-term strategic choice."
The new pricing structure was driven by Netflix's desire to build up its service that streams video over high-speed Internet connections, even at the risk of hurting the DVD-by-mail rentals that used to be its main business. Netflix management believes the convenience of Internet video is the main reason that it has added 17 million U.S. subscribers during the past three years, establishing the company as a major player in the entertainment industry.
As the streaming service took off, Hollywood studios and other video distributors such as Starz have been demanding higher fees for the licensing rights to their content -- a trend that caused Netflix to dig deeper into its subscribers' wallets.
Even with fewer subscribers, Netflix expects to bring in $10 million to $25 million more from its customers than during the July-September period than it did April-June.
Netflix revenue won't keep rising, though, if more subscribers flee. Pachter thinks that could still happen because some customers won't be billed at the higher rates until the end of the month.
Besides being more expensive, Netflix's new pricing structure is also more complicated for subscribers who want to stream and rent DVDs from the service.
Until Sept. 1, Netflix offered plans that bundled DVD rentals and unlimited video streaming for as little as $10 per month. Those options are now sold separately, resulting in a cost of at least $16 per month for people who want streaming and DVDs. Having both choices is appealing because Netflix's streaming library primarily consists of old TV shows and movies, leaving DVDs as the main way to see recently released films.
To hold down costs in a tough economy, millions of Netflix customers are either limiting their subscriptions to a streaming-only or DVD-only plan. Other customers are canceling their accounts to protest the new pricing scheme. Those canceling are following through on threats that were made on Facebook and Netflix's own blog after the higher prices were announced.
Despite the vitriolic reaction, Netflix CEO Reed Hastings still thought the company would be able to add subscribers. In late July, he issued a forecast that indicated Netflix would end September with 25 million U.S. subscribers, up from 24.6 million in June. That prediction was lowered Thursday to 24 million. The revision mostly reflects Netflix's expectation that it will have 800,000 fewer DVD-only subscribers than it previously thought.
Many of the people no longer renting DVDs from Netflix will get their discs elsewhere. That could be a boon for Redbox, which rents DVDs for $1 per night through 33,330 kiosks in supermarkets and other retailers, and Blockbuster, which still has 1,500 U.S. stores after emerging from bankruptcy protection under the ownership of Dish Network Corp. Investors are betting Redbox will be the main beneficiary; the shares of Redbox owner Coinstar surged $3.33, or more than 7 percent, to close at $48.55 on Thursday. Dish Network's shares edged up 11 cents to $25.82.
This could be an opportune time for would-be rivals to attack Netflix's streaming service too, BTIG Research analyst Richard Greenfield wrote in a Thursday blog post. Internet retailer Amazon.com Inc. launched a free streaming service for subscribers to its two-day shipping service earlier this year. Greenfield and other analysts believe Google Inc., already the owner of YouTube, is eager to expand its Internet video offerings to include more movies. One way Google could achieve that would be to buy Hulu.com, which has been put up by for sale by the television network owners that supply its video content.
"Netflix made a bad move, raising prices as much as they did," Pachter said.
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775 views
Supporting Founder
Really excited for this season with Kentucky having a new coach and some really exciting recruits. Probably won't last long, but here's hoping this season is great.
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2326 views
AI Overview
The 2025–26 College Football Playoff concluded with the Indiana Hoosiers winning the national championship by defeating the Miami Hurricanes 27–21. [1, 2, 3]
Playoff Results Summary
The 12-team playoff bracket featured the following key results across each round: [1]
The 2025–26 College Football Playoff concluded with the Indiana Hoosiers winning the national championship by defeating the Miami Hurricanes 27–21. [1, 2, 3]
Playoff Results Summary
The 12-team playoff bracket featured the following key results across each round: [1]
- First Round: Alabama defeated Oklahoma (34–24), Miami (Fla.) beat Texas A&M (10–3), Ole Miss topped Tulane (41–10), and Oregon defeated James Madison (51–34) at higher-seeded campus sites.
- Quarterfinals: Miami (Fla.) upset Ohio State (24–14), Oregon shut out Texas Tech (23–0), top-ranked Indiana rolled past Alabama (38–3), and Ole Miss edged Georgia (39–34) across the New Year's Six bowls.
- Semifinals: Miami (Fla.) advanced past Ole Miss (31–27) in the Peach Bowl, while Indiana dominant-defeated Oregon (56–22) in the Fiesta Bowl.
Pub Member / Supporter
Walter Koenig, Chekov on Original ‘Star Trek,’ Dies at 90
Walter Koenig, who memorably played Chekov in the original "Star Trek" series and seven "Star Trek" feature films, died Sunday in Los Angeles.
variety.com
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Rest In Peace 
Lifetime Supporter
I know HipKat said that they were working on conversions but we got the official news yesterday right from Dish that starting next month all DMA's will be on the western arc, and all customers will be assigned to that. That's gonna mean a lot of customers around here aren't gonna get Dish unless there are exceptions. Too many mountains and trees.
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4694 views
TWiT Tech Podcast Network
Time for another AWESOME video from the TWIT Network!
View: https://www.youtube.com/shorts/SqPMCS9OOSY
Direct YouTube Link - Preorders Open for the Brax Wink De-Googled Phone #shorts
TWIT's Website
TWIT Live Feed
View: https://www.youtube.com/shorts/SqPMCS9OOSY
Direct YouTube Link - Preorders Open for the Brax Wink De-Googled Phone #shorts
TWIT's Website
TWIT Live Feed
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8 views
Supporting Founder
Lifetime Supporter
This is a thread that will keep you apprised of 4K events that will be showing on Dish channel 540. Keep looking here for information.
As of today, 9-27-17, there are no scheduled events posted for the next 2 weeks. That is subject to change on a daily basis.
As of today, 9-27-17, there are no scheduled events posted for the next 2 weeks. That is subject to change on a daily basis.
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167896 views
. can we say over priced garbage!!!I'm thinking of switching to DirecTV and wanted to know what equipment I should be asking for.
I'm wanting wired satellite due to that fact that I live in the sticks and there is no reliable, decent speed internet for streaming available.
What would be the correct equipment for three 4K tvs in the house?
I'm wanting wired satellite due to that fact that I live in the sticks and there is no reliable, decent speed internet for streaming available.
What would be the correct equipment for three 4K tvs in the house?
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S
why not just do a rebranding of the two
As they pivot away from using dishes and more toward streaming, the DirecTV brand would make much more sense.why not just do a rebranding of the two
been there 
S
agree to a certain point!!! is charlies pockets gonna get tight and will he cancel channels because he don't want to pay for them??? a hopper 3 on dtv channel lineup would be amazing and every mans dream come true lol
Squirrels have eaten my antenna wire on my home unit that is a car radio running of the 12 volt side of my solar system. I need a new antenna and would like to add something to one of my existing masts. The reason I am looking at this that I am also covered in trees which has not been a problem, but something mast mounted would future proof me. Thanks in advance.
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176 views
A
We have the pro-500 and it's a beast pulling in the signal!!! always full bars no matter how much it rains. it's worth every penny
I am a animal lover, but this year I gave up gardening. Even moved it to potted plants on the second story deck last year. Can't tell you how much use my Ruger 10-22 got, but it was a losing battle for me. Never got any food. So now they eat coax instead! 20 acres of dense woods behind me and my stuff tastes better, either veggies or wires!
A
i might think about running cables through some conduit to prevent the Squirrels from chewing em all to hell
Staff member
HERE TO HELP YOU!
Cutting Edge
Sometimes a thread gets so many posts in it that is can cause issues for the server so that why today we introduce The Song Name Game Part 3!
So let the game continue!
The last song was added by Bobby who posted...
One Meat Ball - Andrews Sisters
CONTINUE ON AND HAVE FUN! WELCOME HOME TO SATELLITEGUYS.US!
Here are the original rules for the game as posted by WebbyDude back in 2006. http://www.satelliteguys.us/threads/68645-Song-Name-Game
Just name a song title and the band who performed it. The next person does the same thing, but needs to list a song title or band name which includes a word from the previous entry. Pick songs from any genre.
Example:
Long Live Rock and Roll -- Rainbow
Rainbow in the Dark -- Dio
Another example:
Ride the Lightning -- Metallica
Lightning Strikes -- Ozzy Osbourne
Get it?
An additional note: we all know that song titles, sometimes, use profane words. Because this is a family friendly website it is advised that you clean up that title up a bit. This is accomplished by using something like sh!t instead of the real word. Thanks....
So let the game continue!
The last song was added by Bobby who posted...
One Meat Ball - Andrews Sisters
CONTINUE ON AND HAVE FUN! WELCOME HOME TO SATELLITEGUYS.US!
Here are the original rules for the game as posted by WebbyDude back in 2006. http://www.satelliteguys.us/threads/68645-Song-Name-Game
Just name a song title and the band who performed it. The next person does the same thing, but needs to list a song title or band name which includes a word from the previous entry. Pick songs from any genre.
Example:
Long Live Rock and Roll -- Rainbow
Rainbow in the Dark -- Dio
Another example:
Ride the Lightning -- Metallica
Lightning Strikes -- Ozzy Osbourne
Get it?
An additional note: we all know that song titles, sometimes, use profane words. Because this is a family friendly website it is advised that you clean up that title up a bit. This is accomplished by using something like sh!t instead of the real word. Thanks....
68619 Replies
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2678306 views
Staff member
HERE TO HELP YOU!
We have a Breakfast and Dinner thread so...
Continuing from the Breakfast thread, found Cornbread mix so ...
Yellow Cornbread Mix
2 Hatch Green Chiles -diced
1 Egg
2/3 cup of milk
add to greased pan
Bake for 400f 20-25 minutes(From instructions)
now to put together and try... this to go with pinto beans...
Continuing from the Breakfast thread, found Cornbread mix so ...
Yellow Cornbread Mix
2 Hatch Green Chiles -diced
1 Egg
2/3 cup of milk
add to greased pan
Bake for 400f 20-25 minutes(From instructions)
now to put together and try... this to go with pinto beans...
5447 Replies
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335877 views
