Netflix stock tanks due to existing customers leaving the service

Discussion in 'Netflix' started by LeoIrish, Jul 20, 2016.

  1. LeoIrish

    LeoIrish Community Leader

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  3. Lost in Delaware

    Lost in Delaware Well-Known Member

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    I think it's ridiculous for anyone to cancel over the $2 increase.

    They went from $7.99 to $9.99.....$9.99 is a fair amount to charge. Heck, CBS All Access is $5.99 alone. Plus they grandfathered the pre-exisitng customers in for 2 years after they raised it.

    No one has a right to complain. If a person can't afford the extra $2 then they probably shouldn't be paying for Netflix period.
     
  4. olandir

    olandir Well-Known Member

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    I'd leave every other streaming service I have before I left Netflix. For me, it's always going to be my go-to binging source.
     
  5. Lost in Delaware

    Lost in Delaware Well-Known Member

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    Same here....love Netflix

    Netflix DVD is still alive and kicking too..every now and then I will do a month of it to catch up on some older or obscure stuff that isn't available anywhere else for streaming
     
  6. LeoIrish

    LeoIrish Community Leader

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  7. Lost in Delaware

    Lost in Delaware Well-Known Member

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    Maybe part of the reason for people leaving is simply the competition.

    Amazon has been pushing their Fire Stick and Fire TV very very hard. Last I looked, Prime's numbers are way up. Maybe there are simply a lot of people who are giving in to the Amazon Prime environment and realizing that it meets their needs enough where they don't need Netflix. One thing the Fire TV does, it makes excellent use of you being an Amazon Prime customer. A lot of people, like me, always used Amazon Prime for just shipping because the AIV experience on Roku leaves a lot to be desired...but now even I have to admit that Fire TV takes being a Prime customer to the next level.

    Playstation Vue hits the market and rolls out across the country. How many people were using Netflix to replace having cable tv and when Vue rolled out, maybe figured they would switch to Vue and get their live streaming back, without having to give in to cable TV providers.

    Not everyone can or will pay for multiple services (which that one article about $$ spent by cord cutters kind of shows, even though I believe their numbers are off)
     
  8. LeoIrish

    LeoIrish Community Leader

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    I wonder if another reason is those who were grandfathered into the cheaper pricing, no longer see an issue with treating Netflix like other streaming options. To which, they use Netflix to binge what they want, and cancel when they are finished. Before, you did not want to do this as it would automatically put you at the price increase. I know we have done this with a few services (ex: subscribed to Starz for a month and then dropped it).
     
  9. Lost in Delaware

    Lost in Delaware Well-Known Member

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    Oh definitely, I've said the same thing before. Which when you think about it, though, just shows you people don't put a lot of thought into it.

    If someone stopped their service for 3 months out of the year at the $7.99, they would have saved $24. If they resumed service at the higher rate for the remaining 9 mos, the $2 increase would have cost them $18. So still cheaper for them to cancel when not using it (as long as they go without for at least 3 months out of the year, which if you were going to only go without for less than that there would be no reason to cancel at all)
     
  10. WanabeFree

    WanabeFree Active Member

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    l think its a little bit of everything but the fact that we are all paying the same rate with no discount for being a long term customer its OK to shuffle services and try out other services off and on. I am thinking of trying Starz or HBo for a month or too but I will always come back to Netflix. I wonder if Netflix is rethinking its strategy as it surely would be more profitable to keep customers subscribed year around than it is to see customers come and go periodically. As to the price increase it is reasonable to me but I do have a limit as to how much I am willing to pay for all services in total so I will swap them out from time to time just to try out other options.
     
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  11. DustnBones001

    DustnBones001 Well-Known Member

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    While Netflix's movie library has gone down over the years to make way for their original content I still think they are worth a subscription. I'm paying the traditional $7.99 for their SD plan which works for me. Netflix also has the best interface and just best overall user experience of any streaming service I have tried.

    I just wish they cared more about beefing up their movie selection than just their original content.
     
    Lost in Delaware likes this.
  12. Rob Lister

    Rob Lister Staff Member Community Leader

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    I'm not sure that the thread title reflects the reason for the price drop.

    [​IMG]

    Subscriber growth was slightly more flat in the last reported quarter but not drastically so.

    I think the real reason is ...
    https://ca.finance.yahoo.com/news/tiger-global-ditches-netflix-massively-000000047.html

    You can't dump 18 million shares and not significantly impact stock price. I don't know what Tiger Global is afraid of, but it isn't customer base. Maybe they are more concerned with Netflix's growing debt...
    http://www.marketwatch.com/story/ne...eep-an-eye-on-its-rising-debt-load-2016-04-19

    That doesn't seem like a lot given that they bring in 800 million every month in revenue, but their content isn't cheap.
     
  13. NickSterling

    NickSterling Member

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    This is my experience. I feel like there was a golden age for available shows, but it's just dwindling. Except for documentaries, of which there are a great deal (fortunately, I love documentaries)
     

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