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Netflix's price-hike exodus: By the numbers
The movie rental (and streaming) giant anticipates losing 1 million customers after a major increase in monthly fees. Here's how it breaks down
 
Customers (and maybe even some pets) are unhappy with Netflix's price hike, and hundreds of thousands of them are showing it by ditching the movie rental service.
Customers (and maybe even some pets) are unhappy with Netflix's price hike, and hundreds of thousands of them are showing it by ditching the movie rental service.
CC BY: Taro the Shiba Inu

Netflix stock dipped sharply on Thursday, after the video rental and streaming powerhouse announced that more customers than expected were jumping ship in the wake of a summertime hike in subscription fees. (A combo plan allowing customers to receive one DVD at a time via mail and have access to unlimited streaming of 20,000 movies and TV shows, for instance, jumped from $9.99 a month to $15.98.) How bad is the resulting exodus going to be? Here, a look at Netflix's plight, by the numbers:

1 million
Reduction in the number of subscribers Netflix has forecasted it will have by late September (the end of the third quarter). Before the price hike, Netflix expected to have 25 million paying customers; now it says it will have 24 million.

590,000
Number of existing customers who have or are expected to cancel their subscriptions by quarter's end. Many existing customers are also switching to cheaper plans — for example, getting two DVDs at a time instead of three.

410,000
Number of customers Netflix had been hoping to sign up as new customers, but no longer expects to capture

55,000
Number of subscribers who left from April 2007 through June 2007 — the last quarter in which Netflix lost customers

60
Percentage increase in monthly fees paid by some subscribers when Netflix hiked its prices

9.8 million
Number of subscribers who have the streaming-only plan ($7.99 a month)

2.2 million
Number of subscribers who have a DVD-only plan ($7.99 a month for one disc at a time; $11.99 a month for two discs)

12 million
Number of subscribers who have a combo DVD-and-streaming plan (ranging from $15.98 to $29.98 a month)

12 million
Number of customers Netflix added as it doubled in size over the last year and a half

16
One-day drop, in percent, in Netflix's stock price on Thursday, when the company announced the unexpectedly heavy loss of customers

0
Reduction in revenue Netflix expects in the third quarter, as the price increase offsets the loss of customers

SourcesArs TechnicaThe AtlanticBusiness InsiderTalking Points Memo, Wall St. Journal

 

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