Yesterday we told you that the Netflix streaming service would be coming to the UK and Ireland early next year, ahead of a rollout in other parts of Europe. Now we can tell you the Netflix price increase in 2011 is causing a subscriber backlash.
During the third quarter in the US the company lost a massive 800,000 subscribers, and could be a direct result of the price changes during the year. Netflix changed its price plans and split its packages on offer to consumers. We reported in the summer the company was to charge $7.99 for each of its streaming and DVD rental packages, which worked out much more than the $8.99 it charged for both packages previously.
According to TechRadar this resulted in many subscribers choosing one package or the other, and only seven percent of its subscribers signed up to both plans. Now the company has showed its hand with plans to expand into Europe, some are wondering if the company’s best days are behind it.
The number of subscribers the company had dropped down to 23.79 million from 24.59 million in the previous three months. Netflix issued a statement to shareholders and said the last few months had been tough, and they had upset many customers with the price changes.
It added though that the company’s “long‐term streaming opportunity is as compelling as ever and we are moving forward as quickly as we can to repair our reputation and return to growth.”. Netflix faces further problems after it failed to renew a deal with Starz Play distribution network, which will result in a vast amount of popular content being removed from the service such as Toy Story 3.
The company may struggle to get consumers to sign up in the UK who already have some popular and cheaper on demand services available. Have you left Netflix recently?