Netflix Says They'll be Losing Customers With New Pricing Change

Posted Fri Sep 16, 2011 at 07:00 AM PDT by Dick Ward

Despite the loss of 1 million customers, the company still contends this was the right choice.

When the folks at Netflix announced there would be a pricing change for their services, they were still convinced of the popularity of their offerings. They said not to expect a large drop in customers, but it's looking like they were wrong.

Netflix had originally expected to keep 25 million subscribers, with 22 million of those streaming and 15 million getting DVDs. The company just released a revision that changes that pretty significantly though. They now expect a full million customers less.

Most of that decline comes from, as you might expect, those that take the DVD only route. In both projections Netflix expects 12 million customers to keep both streaming and DVD plans, but the prediction for DVD only drops from 15 million to 14.2 million. Streaming customers are expected to drop, but only by 200,000.

Source: Engadget

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Tags: Industry Trends, Netflix (all tags)