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After Quikster Missteps, Netflix Has Recovered

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by Anne Thompson and Maggie Lange
March 14, 2012 3:45 PM
5 Comments
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Digital Viewing Transition: The Rise of Netflix

There's no question that Netflix misjudged how to handle their necessary survival transition from DVD rentals to streaming. They left their customers feeling confused and betrayed during the Quikster-Netflix debacle. But now, analysts report, Netflix appears to be forgiven. Not only has Netflix recovered from the loss of 800,000 monthly subscribers in the third quarter last year, which brought total subscribers to 23.8 million, but paidContent reports that Netflix streaming is doing exceptionally well. 

Here are the numbers: Netflix stock is worth an estimated $130 per share, according to CitiGroup.  For the last fiscal year, Netflix reported a net income of $231 million, which CitiGroup estimates could grow $90 million for every million customers they add from here.  There are currently back up to 25 million Netflix subscribers.  And customers are growing; in a recent study of 3,500 participants, 30% reported getting their online streaming of movies and TV from Netflix, up from 27% in December.
 

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More: NetFlix, Netflix, New Media & Technology

5 Comments

  • Nate | March 21, 2012 11:40 AMReply

    Once Netflix separated its streaming and disc rental service and increased their prices, customers started to realize that Netflix is not the only competition out their. Blockbuster who was taken down by Netflix has now made a comeback by offering customers new releases 28 days before Netflix and Redbox does. Blockbuster is offering DISH customers a streaming and disc rentals service for only $10/mo. A DISH co-worker told me about Blockbuster@Home and he told me that I can stream 3,000 movies to my TV and 4,000 movies to my PC, plus I receive 20 premium movies channels with this package. I have over 100,000 titles to choose from by mail, which includes games, movies, TV shows and blu-rays!

  • ag | March 14, 2012 7:59 PMReply

    that is -- they planned to piss people off, lose subscribers, then get them back and then some in a move toward streaming-only content. very cold-blooded. however, dvds are history. you got to make a move. if some people get hurt and the blogs cry foul, so be it. again, though, you'd never prove any of it.

  • ag | March 14, 2012 7:51 PMReply

    yeah, but i didn't/don't buy it. maybe i'm jaded. just don't think they really care. i don't think it worked well, but don't think they care either. they're out to get content for digital streaming -- it's a race. very cold-blooded. i think they're happy with both tactics and results. given a chance to avoid negative press, yeah maybe they'd do it differently. but, in the end, no regrets at netflix. the pieces fell to neatly into place for me to think they had anything else in mind. the apologies were (imho) smoke and mirrors. put it this way: if it were me, i'd have zero problems with how people were up in arms over the dvd thing or what the blogs said. none. i'd be happy with the results. if i could turn back the clock, find a better more palatable way, well...maybe. where things stand today i'd be happy, and i think reed hastings is too. (i think) he's laughing at us, but you'd never prove it

  • Anne Thompson | March 14, 2012 4:01 PMReply

    I always thought Netflix was on the smart path; but they didn't handle their customers well and admitted as much at the time.

  • ag | March 14, 2012 3:55 PMReply

    they know exactly what they're doing. they made no errors. this was the expected outcome. they could care less how they're perceived. the bottom line is all that matters. the last 12 months has been a display of virtuosity. the press was made to look silly with their 'netflix has really blown it' bluster

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