Well there goes my Netflix Stock… I don’t know what’s going on within your brains Netflix, but you make it harder for me to love you as much as I have been loving you in the past. I’ve been watching a lot of Netflix movies on my cellphone while i’m at work, now that Netflix has the App for the android. When I’m at home, I continue to enjoy the movies that come in through my Xbox, and every once in a while, I enjoy a DVD or two that come by the mail.
Then I get online to check out my portfolio… and I notice that my bread maker dropped over 30% in the closing hours. This drastic loss came after Netflix announced that they lost 810,000 subscribers. And really I couldn’t blame them for leaving.
The loss came because of the spike increase that Netflix decided to pull off earlier this year. The price hike angered many people, including me, but not to much since I still enjoyed their movies while I was on the go.
Then they raised the prices again, and announced that they were splitting up the company in two. The DVD portion of the company was going to be called Qwikster. The streaming portion of the company was going to stat as Netflix… bu then they cancelled the split and they decided not to split out up the company due to negative media problems. Reed Hastings, the CEO of Netflix sent out an apology letter because he knew we were all pissed at the change.
The main apology was: We will listen to our members more… it was insinuated in the following line of the letter –
“Qwikster became the symbol of Netflix not listening. We quickly changed course on that, and we’re going to stick with DVDs as part of the Netflix brand.”
The price drop on the stock market for Netflix was huge when you look at the subscriber base. The prices dropped by over %30 for 810,000 subscribers. Netflix has about 21.4 million other members that still use streaming, and 13.9 million DVD subscribers. So there really is no reason for that big of a price drop, so I’m sure things will pick back up… that is unless Netflix screws up again before the next quarter.