Netflix Posts Huge Losses in Profits and Customers
For the once-popular video subscription service Netflix, things keep going from bad to worse.
Netflix has posted larger then expected loses for the third financial quarter after losing nearly 800,000 subscribers. The company has been on a downhill slide since July, when they raised their prices by as much as 60%. Netflix's spin-off DVD rental service Qwikster was also extremely unpopular, essentially forcing customers to choose between receiving DVDs or receiving streaming video. The company had predicted some loses this quarter because of all the negative backlash, but this exceeded any of their predictions.
I have never been a Netflix subscriber, and with all this craziness going on, I'm not planning on signing up anytime soon. I can understand having to raise prices, they are a business, after all. But the way they handled the price increase, as well as splitting up their DVD and streaming video services, was really dumb. If Netflix can't recover from these mistakes, I don't think the company will be around for much longer.