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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Andrew EisenA bit busy with my 30 Days of Netflix project but I did play through the first world of New Super Mario Bros. 2 at a sushi restaurant last night.05/23/2015 - 10:59am
MattsworknameSo, whats everyone playing? Im still knee deep in bloodborne, but finaly beat Rom the spider05/23/2015 - 7:20am
Andrew EisenWe're planning on doing the podcast Saturday evening, as usual.05/23/2015 - 12:32am
Matthew Wilsonmy bad was doing it from my phone.05/22/2015 - 11:34pm
Goth_SkunkMatthew, that's a PDF. Looks like a lobbying report. What's that got to do with The Witcher 3? EDIT: Thanks Mecha.05/22/2015 - 11:33pm
MechaCrashI think this is the link you meant to post: http://www.gamespot.com/videos/the-point-the-witcher-3-a-new-benchmark-in-player-/2300-6424964/05/22/2015 - 11:31pm
Matthew WilsonThe Point - The Witcher 3: A New Benchmark in Player Choice http://www.gamespot.com/videos/the-point-the-witcher-3-a-new-benchmark-in-player-/2300-6424964/ fixed05/22/2015 - 10:37pm
Matthew WilsonI assume no show this weekend?05/22/2015 - 10:27pm
TechnogeekKaylaKaze: I fail to see how "that key was obtained via theft by deception" isn't fradulent.05/22/2015 - 8:46pm
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KaylaKazeESO banning people for buying thier game when it was cheap, claiming fraud. http://www.reddit.com/r/elderscrollsonline/comments/36womu/deactivation_of_fraudulently_obtained_esotu_game/05/22/2015 - 5:29pm
Matthew Wilsonwtf? wounder if its time for a site redo with modern tech. somthing cheap like the latest version of word press.05/22/2015 - 5:27pm
Andrew EisenJames pasted my copy into a new story for me and the crappy Word formatting it inherited broke the site.05/22/2015 - 5:21pm
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