... they just say they will to look good in public. Most subscribers will pay the 60% more. Stock should be 40% higher. NFLX should go to $380 this summer.
I cancelled my DVD service and kept my streaming service, but that cut my monthly fees to about $8 which is half of what they were hoping I would pay and even a couple of dollars less than what I had been paying for the combined DVD/Streaming service.
Don't fool yourself. You can't increase prices by over 50% and not expect to lose customers. Some say, "it's only $8 a month, who is really going to cancel over that?" And I would agree if everybody found the service extremely valuable.
In my case, I found that most of the new movies coming out on DVD are crap including many that I had hoped would be good (like Tron Legacy) and so I was checking out maybe one DVD a month at most. I actually used the streaming service more to watch older good movies and tv shows and so I did not mind paying $10 a month. But when they changed the pricing structure, I had to ask whether I really got much value out of the DVD service and the answer was no, so I cancelled it and kept the streaming.
Many people probably did likewise, but kept DVD service and dropped streaming. Either way, I Netflix actually collects $2 less from me per month now than they did before.
(I have no position in NFLX. I am just a curious customer)
I am paying less now than last month. I stopped streaming and went with 2 movies unlimited. I pay Netflix 40 % less now. Streaming sucks---- all old crap. I can turn around 12 movies easy. Also I keep 2 a month and claim it never came. They cheat My short I cheat them.
You can get amazon prime for less. This is the opening they have been waiting for. netflix will lose money on the the people that currently pay a little more for dvd and streaming but hardly use the streaming. The streaming content is progressively getting worse and when contract come up later it is going to cost Netflix a ton of money. I see this stock in the $100 range in 12 months. Amazon will continue to increase their market share. It is a shame I was a long time Netflix supporter. Have really enjoyed their service for years. Looks like it is time to move on.