Wednesday July 20, 2016

Netflix Blames Press, Not Hikes, For Lower Subscribers

As crazy as this sounds, maybe all this recent talk about price hikes, even though prices were actually raised last year, might have actually scared people off. Or, it really was the price hikes. Either way, Netflix added far fewer subscribers than expected.

"While unآ­grandfathering and associated media coverage may moderate near آ­term membership growth, we believe that unآ­grandfathering will provide us with more revenue to invest in our content to satisfy members, thus driving longآ­term growth," the company tells investors in the note. "Over the second half of this year, we’ll complete unآ­grandfathering. Our threeآ­tier pricing (in the US: $7.99 SD, $9.99 HD, and $11.99 UHD) is working well for us and for new members, and our gross additions remain healthy."