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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MattsworknameConfederate flag, Relgious organizations, etc etc. Andrew isnt[ wrong, just remember not to let that mentality lead to censorship.07/01/2015 - 11:20pm
Mattsworknamefind offensive or disturbing, and that mindset leads to censorship. It's all well and good to say "This would be better IF", just so long as we remember not to let it slide into "This is offensive, REMOVE IT". IE , the current issues surroundign the07/01/2015 - 11:19pm
MattsworknameAndrew and goth both have points, and to that point, I'll say. Saying somethign is improved by changing something isn't a problem, on that I agree with , but at the same time, on of the issues we have in our society is that we want to simply remove things07/01/2015 - 11:18pm
Andrew EisenSee? Suggestions for improvements that involve taking things away do not mean the work is garbage or performing poorly, critically or commercially.07/01/2015 - 9:29pm
Andrew EisenSkyward Sword is spiff-a-rific but it would be an improved experience if the game didn't explain what each item and rupee was every single time you picked them up!07/01/2015 - 9:27pm
Andrew EisenHere's another: De Blob is a ton of fun but it would be improved without motion controls. Incidentally, THQ heard our cries, removed motion controls for the sequel and it was a better game for it!07/01/2015 - 9:24pm
Andrew EisenI'll give you an example: Arkham Knight is a ton of fun but the tank sucks and the game would be even better without it.07/01/2015 - 9:23pm
Goth_SkunkWell clearly we're diametrically opposed about that.07/01/2015 - 9:03pm
Andrew EisenNot even remotely true.07/01/2015 - 8:59pm
Goth_SkunkIt is, if the suggestion involves taking something away from a product in order to make it better.07/01/2015 - 8:49pm
Andrew EisenOffering suggestions for improvement does not mean that the work in question is garbage or not doing fine.07/01/2015 - 8:21pm
Goth_SkunkIf their products were garbage, they wouldn't be as praiseworthy as they are.07/01/2015 - 8:08pm
Goth_SkunkAnd Andrew, I really don't think GRRM or the producers of the Game of Thrones TV show need anyone to tell them what to do to make their products better.They appear to be doing just fine on their own.07/01/2015 - 8:07pm
Goth_SkunkThe only thing not worth talking about, is what shouldn't be talked about.07/01/2015 - 7:47pm
Goth_Skunk@Infophile: It could be a reason, if I were wrong. I'm not.07/01/2015 - 7:44pm
PHX Corphttp://kotaku.com/steam-players-take-justice-into-their-own-hands-virtua-1715215648 anyone seen this, Steam Players Make Their Own Justice, Virtually Imprison Troll07/01/2015 - 7:17pm
Andrew EisenHeh, just had our (IGN's) journalistic integrity called into question over two typos on one of the Wikis (which are editable by the readers).07/01/2015 - 6:08pm
Matthew Wilson@tech this isnt the only stupid tax in recent months though. they were adding a commuter tax as well. if they continue doing crap like this, they will run in to the same issues as Detroit.07/01/2015 - 5:34pm
TechnogeekI guess we can give Chicago credit for diversifying their portfolio of corruption, although they've still got a lot of work before they retake that crown from Louisiana.07/01/2015 - 5:29pm
TechnogeekEh, cities abusing taxation power for their own game isn't really a "Detroit" thing so much as a "corrupt small town" thing.07/01/2015 - 5:29pm
 

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