I'm sorry, will you have me back?
Netflix announced plans to separate its movie-streaming business and its DVD-by-mail service. The company will re-brand its DVD-by-mail service as Qwikster. Netflix Co-Founder and CEO, Reed Hastings, in a blog post, announced the changes. Hastings lead off the blog post by saying, "I messed up. I owe everyone an explanation." He went on to say, "It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology."
Netflix "messed up" in how it discussed the pricing changes, which raised fees on customers who pay for both DVD and streaming. The company pulled the plug on its $9.99 unlimited streaming and DVD subscription, requiring subscribers to pay $7.99 for each service. Last week, shares of Netflix lost nearly 25% of their value, after the company revealed that it lost more customers than anticipated following the price changes. Total subscriber guidance was cut by 4% or 1 million subscribers with the company seeing total DVD-only subscriptions totaling 2.2 million, down from its previous forecast of 3.0 million and streaming-only subscriptions totaling 21.8 million, down from 22 million.
Netflix (NFLX : NASDAQ : US$143.75), Net Change: -11.44, % Change: -7.37%, Volume: 19,864,296
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