“On Monday, the company warned of more cancellations as it grapples with the fallout from a price increase and other unpopular moves,” Mukherjee reports. “The company that shook up Hollywood with its DVD-by-mail service has seen its shares plummet since July, when it announced a price rise for subscribers who wanted both DVDs and streaming. A wave of cancellations hit the company that had been famous for red-hot growth and loyal customers.”
Mukherjee reports, “Netflix — which is trying to recover from the roughest patch in its nearly 15-year history as it moves to emphasize online streaming of television and movies — has forecast a loss for the first quarter of 2012 as it spends more to expand into Europe… Netflix shares were trading at $74.05 in pre-market trade on Tuesday. They closed at $118.84 on Monday on Nasdaq.”
Read more in the full article here.
MacDailyNews Take: We never really understood Netflix’s popularity beyond those deeply committed to ripping DVDs. It always seemed anachronistic to us to be waiting and snail-mailing physical media back and forth, and their streaming offerings were/are underwhelming, to say the least. We’re one group that Netflix won’t ever have to worry about losing as it stumbles and bumbles, potentially on its way out.