Netflix Losing 800,000 Subscribers

Netflix movie streaming service providers and television shows, announced loss of 800,000 subscribers in the United States within three months. On 30 September 2011, Netflix subscribers rate fell from 24.6 million to 23.8 million people. One cause of the departure of customers allegedly due to price increases that had drawn protests.

The problems began in July when Netflix decided to give separate prices for DVDs that are sent via e-mail and streaming video. This makes the customer must add the cost of subscription. Consumers protest through social networking Twitter with hashtag # DearNetflix which then makes the decision be postponed. However, since the decision was only postponed, not canceled, when prices actually increased, the customer went back protest. The share price immediately dropped by 19 percent at the time.

"We confess the cause of price rises less communicates. Customers consider us greedy, but we have to struggle to pay the price of licenses streaming content," said a spokesman for Netflix. Analysts predict the Netflix streaming content license will increase from 180 million U.S. dollars in 2010 to 1.98 billion U.S. dollars in 2012.

Netflix really is trying to be more powerful in business than DVD streaming service via e-mail. CEO of Netflix, Hastings, on 18 September 2011 had announced that the DVD service via e-mail has changed its name to Qwikster, while the brand will be dedicated to Netflix streaming video service.

However, in September anyway, the cable network Starz pay-cut contract with Netflix and announced that it will attract film and television shows from Netflix in early 2012. Starz demanding greater value of the contract for valuable content and now have a bargaining position with a strong competitor Netflix.

Hastings will continue to pursue claims of streaming content and will seek exclusive contracts that reinforce content developed streaming Netflix. Will be facing an uphill struggle for Netflix competitors like Google (GOOG), Redbox (formerly owned by CoinsStar), Amazon, and Hulu.