Netflix Q3 financial results

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After a tumultuous third quarter, the numbers are finally in for Netflix, and as expected its price hike and Qwikster madness have cost it a few customers in the US. Currently the company is reporting a total of 23.79 million customers in the US, down from 24.59 million last quarter -- fewer than even it projected a few weeks ago. According to the report, it lost more "long term" customers than expected, which it attributes, again, to its poor explanation of the reasoning behind the change. To address those decisions and its inability to reach a new deal with Starz, it has a few more numbers to show, as apparently only 7 percent of new customers are opting for the $15.98 hybrid package, while Starz Play content currently accounts for about six percent of streaming hours. Other competitors are also mentioned -- Amazon Prime Instant Video's content library is referred to as "duplicative" and just a "small fraction" of what Netflix offers, as it counts on newly-signed exclusive deals to widen the gap.

Those deals mean new movies like Drive, Paranormal Activity 3, The Rum Diaries and The Immortals will show up on Netflix in the usual pay-TV window, on top of a library of catalog TV shows that pulls from all five broadcast networks and 95 percent of cable TV stations. Internationally, Netflix is up to one million customers in Canada where it plans to double quarterly content spending, while Latin American customers can look forward to iOS and Xbox support soon. While its UK launch is on for Q1, it expressed concern for competition from Sky Movies, BBC and Lovefilm, and it plans to hold off on further expansion after that. We'll dig through the report more and tune in to their earnings call in a bit, hit the source link to check out the PDF for yourself.
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http://www.engadget.com/2011/10/24/netflix-us-subscriber-count-drops-by-800k-in-q3-21-45-million-s/



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http://ir.netflix.com/common/downlo...5e076d77&filename=Investor Letter Q3 2011.pdf
 
So basically if Mark Zuckerberg was drunk on Gin all the time Facebook would be doing exactly the same as Netflix.
 
remnant said:
I can't believe Netflix got so burned by their recent ideas and price changes. People are cheap as fuck.
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Even if they didn't screw that up, the studios are still trying their best to take them down. It would have happened one way or another.

But don't worry, you can still get the same great service without Netflix! Just give your credit card information to every major studio, each with their own monthly fee!
 
remnant said:
I can't believe Netflix got so burned by their recent ideas and price changes. People are cheap as fuck.
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I know. It's $8 a month for unlimited streaming content. That's the cost of ... one or two 1 night DVD rentals back in the day.
 
Netflix stock tanked as a result in after hours trading. It went from 118 to 87. Man, it was over 300 back in August. What a train wreck!
 
Had they addressed the issue of Netflix not playing on my Japanese PS3, I would still have my account with them. At least Hulu works, and they got my $8.
 
I kinda feel bad for leaving now... But I really just didn't use it anymore.. The movies were too old and my favorites were overplayed... Not enough there or incentives to keep me subscribed.
 
Marty Chinn said:
Netflix stock tanked as a result in after hours trading. It went from 118 to 87. Man, it was over 300 back in August. What a train wreck!
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Wow, that is quite the drop.

I'm one of the people who canceled their accounts. It was on hold, but then they brought up all their separate plans and I wasn't really planning on reactivating for some time so I just went and canceled it.
 
lol honestly, I just use Netflix to watch Family Guy and other hilarious cartoons. I'm considering canceling it since I don't have time to take full advantage of it during the school semester...but man, dat dere options. If I do cancel it, will def hop back on board when the semester ends.
 
remnant said:
I can't believe Netflix got so burned by their recent ideas and price changes. People are cheap as fuck.
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I agree it's still a good deal, but a lot of people are hurting right now and every dollar counts.
 
I can't believe the cheapness of people for leaving. 8 bucks a month. Like, it's literally going to McDonalds once, or Starbucks. jfc
 
remnant said:
I can't believe Netflix got so burned by their recent ideas and price changes. People are cheap as fuck.
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indeed....people really dont remember what it was like just a few years ago with blockbuster and hollywood video.

those were the dark times, netflix is a goddamn miracle that everyone pffts at because they can't get this or that, but ignore the thousands of choices presented for only 8 fuckin bucks...

like I've met some cheapskates in my life, but they were never as bad as former netflix customers.
 
Ketchup Boy said:
lol honestly, I just use Netflix to watch Family Guy and other hilarious cartoons. I'm considering canceling it since I don't have time to take full advantage of it during the school semester...but man, dat dere options. If I do cancel it, will def hop back on board when the semester ends.
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Chad Warden? Is that you?
 
Um, if Netflix dies, who will rise to take up the niche?

Please don't say Apple TV/iTunes or Amazon. They don't even come close.
 
remnant said:
I can't believe Netflix got so burned by their recent ideas and price changes. People are cheap as fuck.
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Or Netflix is incompetent as fuck. Even if an increase is inevitable as content providers fight for a bigger slice of the pie, you have to habituate people by degrees. You can't just double the amount someone is paying from one month to the next and expect customers not to react negatively. Sounds to me like people are voting with their wallets. Isn't that exactly how the system is supposed to work? Even beyond the price changes Netflix has been screwing up. I mean, what the hell was that whole Quickster thing about? What moron thought diluting an already known brand and forcing customers to manage accounts separately was a smart move? Are you going to blame their awful PR on customers as well?
 
Netflix still has a couple things going for it I think.

1) Name brand
2) Accessibility - it's an app on most mobile platforms and available on all the consoles.
3) There isn't a comparable alternative to it.

Downsides:

1) I think it's almost inevitable that the movie studios and TV networks will eventually make some sort of alternative to Netflix that beats it. Either that or Apple and/or Google get their act together. Hulu has already carved out a niche for TV.
2) Capped internet.


I think if you're holding shares in Netflix, you're hoping for it to be bought out by Apple or Google.
 
I also have to admit that I wish people would take this kind of stand in regards to shit that is really outrageous like the prices of food and tickets at movie theaters, concerts, sports events, theme parks, etc. Netflix deserves a little scorn for how they handled this price increase but not this much.
 
I cancelled Netflix because I never used it. I only watched Robotech, South Park and Home Movies on there so I just ripped them to my iTunes and was done with it. I don't think Netflix is that great of a product anymore and I'd recommend Hulu+ instead to my friends.
 
backflip10019 said:
I know. It's $8 a month for unlimited streaming content. That's the cost of ... one or two 1 night DVD rentals back in the day.
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Netflix should've charged extra for streaming from the start rather than giving it away with DVD access. The problem here is not so much the cost (it's still a good deal IMO), but the fact that they raised prices. People are thinking "I suddenly have to pay double for the same service I had last month, fuck Netflix."

The news about Starz content being removed early next year certainly didn't help either.
 
PastorOfMuppets said:
1) I think it's almost inevitable that the movie studios and TV networks will eventually make some sort of alternative to Netflix that beats it. Either that or Apple and/or Google get their act together. Hulu has already carved out a niche for TV.
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Aren't the networks already trying to sell off Hulu?
 
I have no problem with the price, it's all the other shenanigans and technical bugs that have been pissing me off in recent months. My DVD queue briefly disappeared last week, the PSN app is broken for me (Wii still works), the whole Qwikster thing, etc.

sangreal said:
Aren't the networks already trying to sell off Hulu?
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They tried, I think they pulled it off the market now.
 
PastorOfMuppets said:
1) I think it's almost inevitable that the movie studios and TV networks will eventually make some sort of alternative to Netflix that beats it.
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No way this would ever happen, there's always a few big companies that want to do their own thing. CBS doesn't support Hulu for example (and they're the #1 network).
 
backflip10019 said:
I know. It's $8 a month for unlimited streaming content. That's the cost of ... one or two 1 night DVD rentals back in the day.
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There are usually less than 2-3 new things on streaming a month I care to watch.

Also back in those days I didn't have companies giving me hours of awesome free video content like whiskey media/youtube. (even though I have a whiskey media sub).

The only reason I have a netflix streaming account still is because my gf isn't caught up on mad men. Once she finishes that I'll probably cancel unless something new pops up I'm interested in.

Honestly can't remember last time I watched a newish movie on streaming because their newer ones are usually starz play which has awful quality.
 
Fuzzy said:
Just under $87 for one but if you wait you'll be able to get them for much cheaper. :P
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Good Jesus they fell hard in the last couple of months

I swear shares were $250+ last time I checked.
 
rhfb said:
Wow, that is quite the drop.

I'm one of the people who canceled their accounts. It was on hold, but then they brought up all their separate plans and I wasn't really planning on reactivating for some time so I just went and canceled it.
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I'm going to be one of those people. I'm going to deactivate very very soon. Just have one more movie to watch.
 
My girlfriend and I both cancelled our accounts in August. There was just nothing new coming out we cared about.

You can only watch Family Guy so many times.
 
Netflix is ONLY $7.99 a month for streaming?

And people are bitching over that?


Holy fuck.


We pay $160 for cable here, phone/internet/tv of course but I mean sheesh... $8 bucks a month..
 
Slayer-33 said:
Netflix is ONLY $7.99 a month for streaming?

And people are bitching over that?


Holy fuck.


We pay $160 for cable here, phone/internet/tv of course but I mean sheesh... $8 bucks a month..
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Yeah, but it used to be free with the actual Netflix service: the DVD by mail thing.

But now they were separated, so those who had DVD by mail (which was everyone who had Netflix before the Instant Streaming option came out, meaning practically everyone since that was a very recent addition), the prices would have almost doubled.
 
Slayer-33 said:
Netflix is ONLY $7.99 a month for streaming?

And people are bitching over that?


Holy fuck.


We pay $160 for cable here, phone/internet/tv of course but I mean sheesh... $8 bucks a month..
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Yeah. Pretty crazy cheap really. But, a few months ago you got a dvd rental also. So it is still less then what they were getting before. In the long run everything will be fine for netflix as long as they stop losing providers. Which I suppose it a big if.

AnEternalEnigma said:
My girlfriend and I both cancelled our accounts in August. There was just nothing new coming out we cared about.

You can only watch Family Guy so many times.
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I hope you've seen Home Movies also. That shit is worth $8 a month alone. Imagine Family Guy, but with actual characters and jokes.
 
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