Netflix Lowers Estimated Customer Number by 1 Million After Price Change

Published Thursday, September 15, 2011 11:35 AM

When Netflix announced their price increase people got angry and were not shy about letting Netflix known how they felt. Many people said they were going to cancel Netflix altogether come september when the prices went into effect, while others said they were going to drop either DVDs or streaming from their plan to make it cheaper. Well it's mid september and it seems those customers have made good on their promise.

According to a statement released by Netflix this morning, Netflix is expecting to have lost around 1 Million customers to the price increase. The estimates predict that by the end of the quarter streaming customers will be down from 22 million to 21.8 million and DVD customers from 15 million to 14.2 million.

Just in case you live under a rock Netflix increased their prices by %60 which made a lot of their customers angry. The outcry started this past July when Netflix announced the plan changes which would include charging $7.99 for Streaming and $7.99 for 1 DVD at a time. This takes customers with the most popular plan from paying $9.99 a month to $15.99 a month and customers were not happy.

Even though Netflix only lost 1 Million customers they are thin ice with a lot more. Netflix stands by their decision to split up the service and believes it's the right long term strategy. I don't know if investors agree with them since they are down by 13% on the stock market at the time of this article.

Story and Image Via Mashable
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