With about a quarter of all Internet traffic in North America passing through its servers and roughly 25 million subscribers, Netflix got everybody’s attention in July when it announced that it was raising its prices by as much as 60 percent.
Now the company is conceding that it has lost more customers than expected.
AP and the BBC are quoting different numbers, ranging from 600,000 to 1 million, so we’ll just settle on a lot. —PZS
AP via Google:
The customer backlash against the higher rates, kicking in this month, has been much harsher than Netflix Inc. anticipated. That prompted management to predict Thursday that the company—the largest U.S. video subscription service—will end September with 600,000 fewer U.S. customers than it had in June.
It will mark just the second time in 12 years that Netflix has lost subscribers from one quarter to the next. The last downturn occurred during 2007 when Netflix lost a mere 55,000 from March through June.