Netflix Braces for Growth Slowdown, Stock Plunges

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Heh, how smart was that price hike again?

The company's sobering forecast Monday overshadowed its second-quarter earnings that easily topped Wall Street's expectations. Netflix's shares plummeted by more than 10 percent, largely because the company expects its results for the current quarter ending in September to miss the targets set by industry analysts.
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i hope they miss every single one of those profit target. that way they will realize that we as consumers rule the roast not them. see when you hike prices for no reason people will flock to BBD. we will find bigger better deal somewhere else.
 
Umm. Netflix hands out a 60% increase to customers with no real official explanation. What did anyone expect.
 
Lol, not only increasing price, but horrible service as of late, authentications errors, movies and shows not playing, frame bars not working, and temporary outages. To top its off their new website is horribly painful to navigate with those very slow scrolling thumbnails. Thumbnails are like nails in the coffin for me. Give me a detailed list any day...

Although if you look at Netflix careers they are hiring a ton of IT people right now. Hopefully things will get better in the future and warranty the price increase. I am tempted to apply for a job there myself...
 
Oh goody another story to continue the emo-rage over a $6 increase in a price that most people agreed was an amazing deal.
 
The supposed HD streaming is on par with dvd quality, never even close to 720 or 1080. Netflix should have mastered the streaming aspect before going overseas and raping consumers with the price increase. I hope other countries like netflix because the US consumers are done with your crap. I am speaking with my wallet and have canceled my account. Suck it netflix!
 
Doubl3KiLL said:
Heh, pretty much. When I read about the price change my reaction was "Oh, well... I guess thats ok"
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Yeah, I'm not upset with the last menu change to the streaming client then I am the price increase, it's much harder to navigate through the various lists with the single line of side scrollers then the previous ones when could be expended to full page views for any of the catagories.
 
Unlimited streaming + discs by mail for $10 = Awesome Deal
Unlimited streaming + discs by mail for $16 = Awesome Deal

If the $6 is enough to break your budget, you probably shouldn't be sitting around watching movies anyway.
 
I don't rent that many movies on DVD so this hike is drastic to me.
I'll be switching to streaming only towards the end of August, going to watch the UK version of Life on Mars again.
 
They are getting what they deserve. Oh well. They should have fixed the website, navigation, and HD aspects then increased the price. You cannot increase the price first randomly and still be offering the exact same problems.
 
Their prices are pretty good, even with the changes. I have recently put my account on hold mainly because I have run out of things to watch.
 
I think it is related to capability vs profit margin. You have x amount of movies and bandwith available to stream. You have exceeded that capability, movie companies now charge a premium, or banwidth cost goes through the roof. You decide to cut back on users by maybe 50%. Now you profit margin is down so you double the price to compensate.

Same with gasoline. The Feds clamor for high milage cars and set a standard forcing 40 mpg by a certain date. Oil companies now sell less product and their profit margin goes down. Since that has to be a constant for the company to exist and maintain business in a manner to which they are accustomed, the consumer price has nowhere to go but up.

Of course if you could get your bulk product cheaper then it could have an effect on the consumer price. But this administration has made sure that it won't happen. If oil gets to be $150 to $200 bucks a barrel maybe they might start drilling, but gas will be 5 or 6 bucks by then.

Dunno, just my opinion.
 
Steve said:
Heh, how smart was that price hike again?
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Given that the "price hike" was essentially a move to distinguish streaming from non-streaming customers, and helps Netflix avoid being ravaged by studios gearing up to raise their licensing rates based on the number of subscribers to each service, really a pretty smart one. They should have handled the transition more gracefully, but naming the studios as the guilty party in those negotiations would have made their situation much worse. I wouldn't even call the market reaction a "plunge." It's a jitter. Things will move forward, and people will adapt, because at the end of the day $6 extra per month is still less than the cost of two movie rentals at a Blockbuster Video.
 
Hmm 8.99$/month for Netflix or $49.99 for cable?

Choose the movies and shows I want to watch whenever I want or look through a list of already playing movies and wait for a good one to show up?

For less than 30 minutes of pay, I think I'll stick with Netflix, thanks.
 
That's great that you think it's an awesome deal. You are right that the $6 increase won't break my budget by a long shot. But just because it doesn't break my budget doesn't mean there aren't better deals available now.
 
NickJames said:
Hmm 8.99$/month for Netflix or $49.99 for cable?

Choose the movies and shows I want to watch whenever I want or look through a list of already playing movies and wait for a good one to show up?

For less than 30 minutes of pay, I think I'll stick with Netflix, thanks.
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you forgot "8.99$/month for Netflix or $49.99 for cable and commercials"
 
grinch said:
That's great that you think it's an awesome deal. You are right that the $6 increase won't break my budget by a long shot. But just because it doesn't break my budget doesn't mean there aren't better deals available now.
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Where can you get DVD+ Blu-ray + Streaming for a cheaper price then Netflix and be commercial free when you stream?
 
Malkizadek said:
The supposed HD streaming is on par with dvd quality, never even close to 720 or 1080. Netflix should have mastered the streaming aspect before going overseas and raping consumers with the price increase. I hope other countries like netflix because the US consumers are done with your crap. I am speaking with my wallet and have canceled my account. Suck it netflix!
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Not me. I am going to give them more money each month to combat people like you. Netflix is awesome! To me the 30 or so bucks I pay a month is well worth the service I get. I don't even use 30% of what I pay for, and couldn't care less. There are periods where I keep the 4 movies I have for months, and only stream 1 or 2 shows on my phone. I am definitely not using what I pay for, but because netflix is such an awesome company I don't mind supporting them.
 
grinch said:
That's great that you think it's an awesome deal. You are right that the $6 increase won't break my budget by a long shot. But just because it doesn't break my budget doesn't mean there aren't better deals available now.
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For the price, and what you can get, there aren't better deals available.
 
grinch said:
That's great that you think it's an awesome deal. You are right that the $6 increase won't break my budget by a long shot. But just because it doesn't break my budget doesn't mean there aren't better deals available now.
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There's better deals? for the same thing netflix offers? please enlighten us.. i'm sure many of us would be very interested to either save money, or find something as good as netflix at it's price point to add into our video sources
 
soulpunisher said:
for those who are canceling their Netflix accounts here is 9 alternatives to Netflix.

http://www.avsforum.com/avs-vb/showthread.php?t=1348775

straight to the source
http://www.electronichouse.com/slideshow/category/11182/1488

closes one to Netflix is blockbuster but the cost more if you want an alacart type deal like DVD+Blu-ray+streaming. The rest will make you broke unless you don't watch that much TV/movies.

I will stick with Netflix.
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LordCalin said:
There's better deals? for the same thing netflix offers? please enlighten us.. i'm sure many of us would be very interested to either save money, or find something as good as netflix at it's price point to add into our video sources
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Exactly, Netflix hasn't got to where it is because they are such an amazing company that people are willing to spend more, it's got where it is because it's convenient and at a very good price. With this price increase it will cost more but the price is still good, for what you get, and still blows the other choices out of the water.
 
$110 or Netflix prices, for just ONE tv show. That's adding all the lowest prices for the first to the fifth season, not on Netflix yet, but it will be. I'm more than happy to pay what little Netflix charges, compared to buying or renting. Plus, I can't even name how many tv shows and movies I've watched. Way more than what I pay for.
 
Wife and I are almost at the point of which a lot of you are talking about. Dropping cable and just using Netflix, and other online sources to watch TV shows.

We honestly haven't even turned on a TV show, well, since Survivor and amazing race ended for the summer.

I can download most of the show anyway if I really want to see them and most of the big shows show up on the network's website the day or 2 after it airs on TV.
 
Netflix stock price down?

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I cancelled my subscription days before the price hike was announced, but I'll probably resume streaming again in the future. Still worth $8/month IMO.
 
Amazing... the article said that 75% of subscribers in the last quarter only select streaming...

So essentially they raised the price a few bucks and force the rest of the customers choose one plan or the other, or pay more for both.

As someone said this could be a move to be able to get good #s for the studios during contracts. While also uping their revenue for streaming to pay for the eventual hike in licensing costs.

I know they have said they are NOT looking to get all content, but I hope they do. I would pay $60-100 for released on DVD content (or a delay even after that to allow for DVD sales).

But with their content the way it is now... its a struggle to find something to watch. The TV series I want to watch is going down since none other then reality shows are being added. Movies... a few come out that I want to watch but many of them are on my htpc already:)

So I may just decide to up my dvd rental from 1 to 3 again.
 
dandirk said:
Amazing... the article said that 75% of subscribers in the last quarter only select streaming...
.
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this is what they want though. They've sorta gone back and forth with dropping DVDs altogether and this just pushes that and makes it easier for them to do it.

I am all for just having streaming content if they could get more of it and better content. Thats why having both is still the best option. Still cheaper than cable AND still cheaper than going to the movies.
 
The plummet was just people either getting jumpy because of the news or profit taking. If you look at the chart, they dropped to $252ish (from $284ish) and quickly regained up to $272ish. It's more of a hiccup than an outright movement.
 
I'd keep using netflix but the streaming playback is jittery and not smooth like on tv or watching a dvd. If they can fix this I'll jump back on. Not sure how people can stand that.

But the overall price is still pretty cheap.
 
LordCalin said:
There's better deals? for the same thing netflix offers? please enlighten us.. i'm sure many of us would be very interested to either save money, or find something as good as netflix at it's price point to add into our video sources
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Really it depends on what you use Netflix for. I use it for Blu-Ray Movies and Streaming TV shows, I watch the occasional streaming movie, but really the selection is pretty crappy. In September I'll be using ad supported Hulu for the TV shows and Red Box for the Blu-Rays. I'm also keeping an eye on Amazon's streaming services. They include a lot of free streaming with Amazon Prime membership, and their pay-per-view streaming prices are pretty good as well.
 
Why are people raging? Great time to buy if the stock plunges anymore, I've already got a plan to stockpile. Holy crap people take the rage glasses off!!!
 
Galvin said:
I'd keep using netflix but the streaming playback is jittery and not smooth like on tv or watching a dvd. If they can fix this I'll jump back on. Not sure how people can stand that.

But the overall price is still pretty cheap.
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Maybe because most people don't have such problems? What hardware are you using to stream? What's your internet provider and speeds? I have 100% smooth HD streaming on my network.
 
Galvin said:
I'd keep using netflix but the streaming playback is jittery and not smooth like on tv or watching a dvd. If they can fix this I'll jump back on. Not sure how people can stand that.

But the overall price is still pretty cheap.
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You might want to test your connection as my streaming playback is smooth, the only stuttering I've ever seen was in the first second or two of starting a title while the buffer fills.

My connection is decent, but we'll often have two computers and an ipad online while watching streaming content as well so I don't think the problem your seeing is at their end.
 
Galvin said:
I'd keep using netflix but the streaming playback is jittery and not smooth like on tv or watching a dvd. If they can fix this I'll jump back on. Not sure how people can stand that.

But the overall price is still pretty cheap.
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I read a lot of people have this jitter problem or don't like the streaming b/c of lag or what not.
I too had this problem and almost gave up on Netflix. What I did was I got my house in order by that I mean I redid my network and got with my ISP (Cox communications) I had an old cable modem that had the old DOCSIS and upgraded to DOCSIS 3.0 http://www.amazon.com/Motorola-SB6120-SURFboard-eXtreme-Broadband/dp/B001UI2FPE/ref=sr_1_1?ie=UTF8&qid=1311790585&sr=8-1 my ISP had to change stuff on their end to make it work. Also I was using my PS3 for netflix and I was using the built in wireless. Think the most it could do was 802.11g and I had an old wireless router that also just did 802.11g http://www.amazon.com/Cisco-Linksys-WRT54GL-Wireless-G-Broadband-Compatible/dp/B000BTL0OA/ref=sr_1_1?s=electronics&ie=UTF8&qid=1311790702&sr=1-1 so I upgraded my wireless router to this http://www.amazon.com/Cisco-Linksys-E3000-High-Performance-Wireless-N-Router/dp/B003B48UQ8/ref=sr_1_8?s=electronics&ie=UTF8&qid=1311790702&sr=1-8 802.11N and put a bridge on my PS3 to hook in the NIC on the PS3 http://www.amazon.com/Cisco-Linksys-WET610N-Dual-Band-Wireless-N-Adapter/dp/B001QVQ7JU/ref=sr_1_19?s=electronics&ie=UTF8&qid=1311790702&sr=1-19 since the wireless part on the PS3 was slow. I also paid my ISP for the fastest internet the can provide me 5MB up and 40MB down. Once I did all that I have never had a problem with Netflix. I am just saying sometime people are blaming Netflix for the gitters and bad video when it could be your equipment is too slow or your ISP may suck. You never know until you test your system.

Just my 2 cents
at least this worked for me.
 
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Theres a homeless guy with a netflix sub. He uses a PO box and watches the movies at the local shelter. If he can afford netflix, any one of you can. $6 is nothing.
 
 
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