Netflix (NFLX) Stock Falls After Members Leave The Ship
(CBS) - Investors sent a strong message to Netflix today. And the message was "Buh-bye."
(Again?) Most popular, subscription-based video rental service has ruffled too many feathers. Netflix (NFLX) stock took a dive on Thursday, falling by over 17 percent.
Full coverage of Netflix in Tech Talk
The decline is probably a response to Netflix announced that it expects 1 million subscribers by the end unless the third quarter. Ouch. As if it had some rough month probably.
The company made a surprising decision to increase the cost of carrying out a massive 59 percent from $ 9.99 to $ 15.98. Install the game and the subscribers of the threat to suspend the service. It seems that they are not lying.
Socks Netflix subscribers with prices 59%
1. Netflix in September fell almost 9 percent, after talking of reform of the library Starz Play stopped.
Netflix stock drops as talks on the agreement unravel Starz
Netflix model of new businesses and higher prices was to fully embrace the new market for consumers of streaming video instead of DVD rental. The transition so far has been less smooth.
Besides this, the continued market competition is fierce. According to a CNN analyst, "the transmission of license costs Netflix content will increase from $ 180 million in 2010 to a whopping $ 1.98 billion in 2012."
On the other hand, Wired Tim Carmody is a convincing argument that the company saved on the DVD market too soon. "Netflix could have owned these customers for years, such as AOL dial-up subscribers that stuck with them and their loyalty to milk in the absence of real competition. Instead, he's pissed off, losing almost one million, "said Carmody.
We can only speculate on what is happening in the business, but we can imagine that they are caught between a rock and a hard place.
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