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Netflix To Lose 1 Million Subscribers

Posted by samzenpus on from the abandon-ship dept.

tekgoblin writes "In light of the recent price increase at Netflix, it made quite a few subscribers mad. Netflix expects to lose around 1 million total subscribers in the short term after the price changes (which split off separate subscription plans for streaming video and DVD rentals). On top of the price increase, Netflix will lose their contract with Starz in February, which will cost them around 1,000 total streaming titles from their collection."

2 of 349 comments (clear)

  1. Re:Linux client by grommit · · Score: 5, Insightful

    Haha, no they wouldn't. A good portion of Linux users would bitch about how the client isn't completely open source. Netflix may get a couple thousand extra subscribers if they made a linux client but nowhere near enough to cover the 1 million they are estimated to lose due to the price increase.

  2. It makes a lot of sense by Atmchicago · · Score: 5, Insightful

    If they lose customers, but get more money per customer, it can work to Netflix's advantage big time. Their costs are mostly on bandwidth, and if they lose 1 million customers, that's 1 million fewer people to feed data to. That amounts to major cost cutting, so even if revenues drop a little but are offset by lower costs then they win.

    --

    You can lead a horse to water, but you can't make it dissolve.