Netflix Cuts Subscriber Outlook by One Million

[dalmvern]

[citation][nom]RazberyBandit[/nom]22 + 15 + 12 =/= 25Perhaps this should be worded more like this: 25 million total subscribers, with 22 million using its streaming service and 15 million using DVD by mail. (12 million of those subscribers use both services.)[/citation]

When I first read the article those numbers confused me too Raz, but after I reread the statement it made sense to me. I think the way you put it would have made it a bit more clear.

 

[paidbyhalf13]

You do know that netflix just stepped on too many toes these past few years and now they are paying for it in upcoming contracts. I'm sure Netflix would have loved to keep the same price so no one cries about these few bucks. I thought the article was on tom's when it reported that companies that hold rights to most movies are going to want a contract that totals in the 1 billion area. When their previous contracts totaled in the hundreds of millions. So ya, blame Netflix for being "greedy" or let them actually try to manage a business they want to run successfully. Even at $15 bucks a month subscription through all the crappy movies there's actually about 5-10 worth titles that you would probably rent through blockbuster. Well at blockbuster that would be at minimum $20 for 10 movies if the price was $1.99 per movie. Not to mention TV shows, one use to be Dexter (until showtime got pissed at netflix for buying out an original TV show exclusively for Netflix) and there's plenty other content that gets switched in that actually make the service a steal at times. Of course I wouldn't pay a fee more than $15-20 bucks a month and I'm sure down the road they will have to hike up prices again. But don't you think Hulu will do price hikes? or Amazon? They all have decent price structures now to lure in subscriptions, but we all know what happens next.... So don't treat Netflix like they are the only ones that are money hungry, just business.

 

[gto127]

It seems like everybodys decided to raise prices during a recession to boost their profits. I just went in Wendy's the other day to find that the double stack was 1.99 instead of 99 & the bacon burger is 1.89 instead of 1.39. Guess what- there was about 1/3 of the people eating these as normal. These companies just need to suck it up and take less profits like everyone else until the recesion is over. It will help their bottom line in the long run.

 

[rzgibbs]

All streaming content providers will have to up their rates to provide better content. Starz and Sony both asked for ten times as much to renew their contracts. I don't understand why all the blame is being placed on Netflix. If you own a business and one of your vendors with exclusive products chooses to raise its price by an order of magnitude you really have no choice but to raise yours to remain profitable. All other studios are following suit with their contract prices; they see it as a chance to leech Netflix's profit.

What sways my decision in whether to keep Netflix is their ability to work out new contracts. I feel they have less new content each month and I move through it rather quickly. Hopefully this will change.

 

[thomaslompton]

[citation][nom]spentshells[/nom]they would do so much better but in canada we force content laws on them making the selection kinda sucky[/citation]
The selection in the US sucks too. I am on the free trial and plan to cancel at the end of the month.

 

[niknikktm]

Netflix is only the messenger. The real culprits here are the content owners like Starz and Sony and their insatiable greed. Every one of these content owners in todays market want to maximize their profit by charging the providers outragous prices for content no matter how old or insignificant, which they must in turn either pay and pass along the increased cost to us or decide to drop the product altogether and thus offer less. It's going to get to the point where there will end up being no worthwhile streaming service availabe and we will have to pay premium pricing for just about everything under the sun. Want to watch one episode of Bewitched? Pay the content owner per view.

Where Netflix deserves ripping is in increasing their prices while at the same time dropping these content providers. Once the decision was made to not pay the ransom, Netflix should have either tried to find another provider of similar content or drop their fees accordingly.

Raising prices while dropping content = Customer exodus.

 

[classzero]

Raising prices while dropping content = Customer exodus.

Absolutely agree. I will be canceling before the 21 of this month.

 

[classzero]

Raising prices while dropping content = Customer exodus.

Absolutely agree. I will be canceling before the 21 of this month.