Netflix had their earnings call today which revealed some interesting information. It was predicted that Netflix would lose up to 1 Million subscribers this year due to price changes and it appears that the numbers were true. Netflix’s figures show a loss of 800,000 subscribers over the last quarter while subscriber numbers were still up 42% yearly. Netflix subscriber losses are down 145% from the last quarter and are expected to continue to fall as users leave the service because of recent pricing changes and loss of confidence in the company. Netflix recently split its DVD service from Streaming and made a company called Qwikster and has since reverted to its original model and cancelled the Qwikster plans.
Netflix stock has not done well in after market trading, its shares are already down 33 points at 85.75 -33.09 (-27.84%). Netflix has tried to increase consumer confidence by scoring a deal with Dreamworks Animation Studios and has promised to add many more titles to its streaming library. I do expect Netflix to recover as they add new customers and try to retain their current ones, the upcoming loss of Starz will definitely hurt so Netflix will have to reassure consumers that everything will be okay. I will keep my Neflix subscription because I believe Netflix still has a strong TV Episode library while their movie streaming library is struggling. Are you going to keep Netflix?