Yesterday, Netflix announced its quarterly earnings, and they weren't good. According to the company's official release, about 800,000 subscribers jumped ship over the whole split plan debacle. The mass exodus was apparently more than the company had anticipated, and it may not be over.
Then, the company's stock hit the toilet water. As if the company wasn't down enough, The Wall Street Journal says that the stock dropped 35 percent in the wake of the company's financial announcement.
Oh, they tried to take your mind off of the chaos. Just last week, Netflix added an app for Android smartphones and tablets. The same day as the earnings announcement came word that the company would branch out its streaming services to the UK and Ireland. Not thinking about the losses yet?
There was also the news about the company's deal with CBS. However, instead of being able to access popular shows like NCIS or Two and a Half Men, we're getting Gossip Girl and Vampire Diaries. It's something, but we're going to need a few more of these types of announcements to ease that whole payment pain.
The AP interviewed Netflix CEO Reed Hastings, who acknowledged the mess that's been made. "We became a symbol of the evil, greedy corporation," he said. He certainly hit the nail on the head. Don't even get me started on Qwikster, though. More importantly, can the company get back in people's good graces?
It's tough to say. If you check out Netflix's Facebook page, people seem to want things to go back to the way they were, no questions asked. Others would be perfectly happy to see Hastings in the unemployment line.
Frankly, Netflix always seemed too good to be true, especially after they added the streaming option. I've heard a few gripes about disc delivery, but back in my disc days, I never experienced any problems. I was always amazed at how my correspondence (yes, I still write the occasional letter!) would take forever to reach its destination, but Netflix always managed to get my returns within a day or so.
When Netflix dropped the bomb in July -- effectively doubling rates for those who wanted to continue with both physical disc rentals and streaming -- I procrastinated, and then dropped the disc service. That's because I would typically hold onto those discs for months at a time. Even with the pricing change, I still believe that Netflix is the best deal in town -- at least while I still have plenty to watch. Blockbuster, Amazon, Hulu, VUDU and others all have viable competitive offerings however, they have yet to make it to the quality or quantity that Netflix has achieved in their streaming package.
There's no doubt that the company screwed up. They know that. My dog knows that. Coke survived New Coke. Hopefully, Netflix can also weather this storm.
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