Netflix raises prices, loses customers, stock price plummets

by Paul William Tenny

Netflix paper sleeve (

Everyone had an opinion about what would happen when Netflix raised prices well beyond reason this year. This was a company on the rise, adding customers by the millions with stock going for $200 a share. Everyone in the major content generation business hated them and customers loved them.

I was one of the latter. Then my plan went from $16 per month to almost $21 a month with no increased service value.

If you predicted that Netflix was going to suffer for that greed, then pop a bottle of bubbly and pat yourself on the back. If you own Netflix stock, open a beer and cry in it. Netflix announced it lost 600,000 subscribers in the most recent quarter after estimating growth of 1,000,000. Netflix stock dropped almost 19% today, down $39.46 in after hours trading. That's a loss of about $2 billion in value in eight hours.

Follow the link for the full story at the Los Angeles Times.

Update: Netflix CEO Reed Hastings addressed this mess in a post on the company's blog. His plans for the future include game rental (will cost extra) and other planned screwups.

Update 2: Netflix announced that it lost another 800,000 customers in the 3rd quarter (2012). Their stock has lost over $200 in value since July.

in Business, Digital Media


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1 Comment

I heard about Netflix losing so many customers and I know I’m in that number. I was fairly happy with the value that I was getting with the service but now, I can see that it’s not going to work for me anymore. I took to the internet and found out that DISH Network is going to be offering the Blockbuster Movie Pass. DISH Network has teamed with Blockbuster, they have a bunch of cool offers that are available to New and existing DISH Network customers as well as non-DISH customers. Blockbuster has the most extensive library of movies, games and TV shows and you can get thousands of On-Demand titles straight to your PC or TV! Customers will also have access to over 100,000 movies, TV shows and games by mail with new releases coming out before Netflix and Redbox. You can exchange them inside a Blockbuster store and even get Blu-Rays at no additional price. The best thing about this new offer is that you won’t find these titles on DIRECTV Cinema or Comcast on Demand and everything is combined onto one bill! I actually work at DISH Network and I’ve been wanting to tell people about this for a long time and I want everyone to check it out!

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