I’ve been very vocal about my dissatisfaction with Netflix lately, and it would seem I’m not the only one who’s decided to part ways with the DVD rental/video-streaming company.
It began a few months ago in July of this year when Netflix announced new pricing for separate DVD rental plans and online streaming plans, resulting in a nearly 60% increase in monthly fees if customers decided to keep their current benefits. At that point, I had already decided to end my service at the end of August, but then Netflix took another hit when Starz announced they would be pulling their streaming content from the service at the end of February 2012. Starz content currently accounts for about 10% of Netflix’s streaming offerings.
Netflix was expecting to lose some customers as a result, but they are now realizing that they are losing even more customers than anticipated. Since March, Netflix has lost 600,000 customers and when all is said and done expects to lose about 1 million. Netflix’s stock has also taken a hit, and is now down 45 percent since July 12, when the company announced it was splitting its subscription plans.
It would seem that customers are doing their best to make their voice heard, and that voice isn’t willing to put up with the current direction of the company. How Neflix responds to all of this has yet to be seen.*
*Note: Since writing this article over the weekend, Netflix HAS responded to the customer drop. I will post more about this later.