Netflix stock drops, analysts question angry subscriber cancellations

Netflix stock drops, analysts question angry subscriber cancellations.

[newsimage][/newsimage]While many Netflix members fume over the recently announced price increase due to take effect in September and promise they will cancel their subscriptions, the company's stock has bounced up and down. What's good for the shareholder isn't always good for the customer says a report this week, illustrating that the disparate goals of keeping prices affordable for discerning consumers and satisfying those who expect to profit from their investments don't mix.

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Well the twitter and facebook replies hasn’t been very friendly or happy either about the changes to the service. Share holder only get their money from the subscribers if they still have them to subscribe to otherwise the share holders payout will drop however you factor it. And that usually is what it takes for the company to make a 180 degree turn around on their marketing decisions. They only make money if the subscribers stay with them when they loose their customer base they loose money that is what is called economics 101 basic principles. They had a working model not only did they most likely loose new subscribers but probably long time subscribers as well. Those are the one you want to keep the long term subscribers they are your bread and butter. And another point the pirates site and torrents couldn’t be more happier just like how they took down the music industry and the industry hasn’t recovered from it. That is where it will be headed it NF doesn’t reevaluate it’s current business model of gouging it’s customer base to satisfy GREEDY studio EX’s and their lust for money rather then provide decent content to subscribers first and the customers will follow. Some how I think they lost their business model that it’s the customer base that makes or breaks your business-charge to much and they reduce consumption and or go to another model or competitor and you will die a slow death. I read and posted to varies sites on the reason for the price hikes was to satisfy their agreements to stream Sony movies from NF and I think this is a bad business model for NF and it’s customer base. Sony screwed itself over in the Music industry and seems like they will screw themselves over in the Movie streaming industry again. It seems to me like they can’t seem to see past their nose that the same business model they used on the music industry go them nowhere. There that my rant for why business fails big time and not because of the consumers.

Exactly how do you believe that a 30 point fall SINCE the announcement the Tuesday before last they actually gained? Seeing as the morning of the announcement the stock opened at 303+. Everyday since the announcement has been a loss on the market for them. Let’s see 30 points X 53 Million shares = 1.6 BILLION (with a B) lost since the announcement on the market alone. Not to mention the subscribers who have cancelled their accounts. The author of this article should have been watching the stock like all of the upset customers. As someone who has been watching since day one there was no rise in Netflix’s stock, however “slight” you think it may have been.