Netflix in 2011

Netflix in 2011

For the exclusive use of A. Loaiza, 2021.

Netflix used to be a perfectly good horror movie. Company management swings a chainsaw; investors scream and are cut to bits; audience is titillated. Now it has become one of those avant-garde films your pseudo- intellectual friend recommends: no fun to watch, surreal and confusing The no-fun-to-watch part is the damage that Netflix's abrupt price increase has had on subscriber numbers. Subscriber growth ground to a halt in the third quarter, after the increase was announced in July. In the current quarter, as the price increase is put into effect, the company expects its physical DVD service to lose 3m—about a fifth—of its subscribers. Streaming video subscribers are expected to be flat to down. Given that Netflix's strategy is designed to encourage growth in streaming, this is far worse news than the hit to DVDs.

— LEX Column: Netflix, Financial Times, October 25, 2011