Netflix Loses 800k Subscribers, Game Rentals Still Up in the Air

October 25, 2011 -

Netflix has had a rough couple of months.  Investors and customers alike have reacted negatively to the company’s recent price hikes and it’s Qwikster announcement was so unpopular that it canned the whole thing mere weeks later.

"The last few months...have been difficult for shareholders, employees, and most unfortunately, many members of Netflix," wrote Netflix CEO Reed Hastings in a letter to shareholders. "We've hurt our hard-earned reputation, and stalled our domestic growth."

Indeed, Netflix lost 800,000 subscribers in the U.S. last quarter and expects to lose more by the end of December.  The company had a total of 23.8 million subscribers as of Sept. 30th with around 21.5 million customers having streaming subscriptions and just under 14 million having DVD subscriptions (most customers have both).  Netflix expects those numbers to drop to around 20 – 21.5 million streaming customers and 11.3 million DVD subscribers.

Hastings also warned shareholders that it will be unprofitable in upcoming quarters due partially to the costs involved with its service expansion into the UK and Ireland.

But what about game rentals?  It’s still unclear whether Netflix’s plans to offer console games in addition to movies died with Qwikster.

"We have yet to decide whether or not to offer video game discs," CEO Reed Hastings told Gamasutra. "The decision will have little financial impact either way."

Sources: CNN and Gamasutra

-Reporting from San Diego, GamePolitics Contributing Editor Andrew Eisen
 


Comments

Re: Netflix Loses 800k Subscribers, Game Rentals Still Up in ...

Netflix has a choice do a rollback or stagnant and die its funny because this all goes back to Netflix trying to buy the rights to one of Kevin Spacey's new shows yet they didn't want to share with anyone else but yet they wanted to stream other studios content...

So movie studios wanted a raise and now Netflix wants to do more Kevin Spacey shoes and so they have the nerve to raise the price again and look what happened.

 
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Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
NeenekoAh yes, because by building something nice they were just asking for people to come push them out. Consequences are protested all the time when other people are implementing them.04/17/2014 - 2:06pm
Matthew Wilsonok than they should not protest when the consequences of that choice occur.04/17/2014 - 1:06pm
NeenekoIf people want tall buildings, plenty of other cities with them. Part of freedom and markets is communities deciding what they do and do not want built in their collective space.04/17/2014 - 12:55pm
Sora-ChanI realize that they have ways getting around it, but one reason might be due to earthquakes.04/17/2014 - 4:42am
Matthew WilsonSF is a tech/ economic/ trade center it should be mostly tail building. this whole problem is because of the lack of tail buildings. How would having tail apartment buildings destroy SF? having tail buildings has not runed other cities around the US/world04/16/2014 - 10:51pm
Matthew WilsonAgain the issue is you can not build upwards anywhere in SF at the moment, and no you would not. You would bring prices to where they should have been before the market distortion. those prices are not economic or socially healthy.04/16/2014 - 10:46pm
ZippyDSMleeYou still wind up pushing people out of the non high rise aeras but tis least damage you can do all things considered.04/16/2014 - 10:26pm
ZippyDSMleeANd by mindlessly building upward you make it like every place else hurting property prices,ect,ect. You'll have to slowly segment the region into aeras where you will never build upward then alow some aeras to build upward.04/16/2014 - 10:25pm
Matthew WilsonSF have to build upwards they have natural growth limits. they can not grow outwards. ps growing outwards is terable just look at Orlando or Austin for that.04/16/2014 - 4:15pm
ZippyDSMleeIf they built upward then it would becoem like every other place making it worthless, if they don't build upward they will price people out making it worthless, what they need to do is a mix of things not just one exstreme or another.04/16/2014 - 4:00pm
Matthew Wilsonyou know the problem in SF was not the free market going wrong right? it was government distortion. by not allowing tall buildings to be build they limited supply. that is not free market.04/16/2014 - 3:48pm
ZippyDSMleeOh gaaa the free market is a lie as its currently leading them to no one living there becuse they can not afford it makign it worthless.04/16/2014 - 3:24pm
Matthew WilsonIf you have not read http://arstechnica.com/gaming/2014/04/introducing-steam-gauge-ars-reveals-steams-most-popular-games/ you should. It is a bit stats heavy, but worth the read.04/16/2014 - 2:04pm
Matthew Wilsonthe issue is when is doesn't work it can screw over millions in new york city's case. more often than not it is better to let the free market run its course without market distortion.04/16/2014 - 9:36am
NeenekoTrue, and overdone stagnation is a problem. It is a tricky balance. It does not help that when it does work, no one notices. Most people here have benifited from rent controls and not even realized it.04/16/2014 - 9:23am
ZippyDSMleehttp://www.afterdawn.com/news/article.cfm/2014/04/15/riaa_files_civil_suit_against_megaupload04/16/2014 - 8:48am
 

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