Netflix Loses 800k Subscribers, Game Rentals Still Up in the Air

October 25, 2011 -

Netflix has had a rough couple of months.  Investors and customers alike have reacted negatively to the company’s recent price hikes and it’s Qwikster announcement was so unpopular that it canned the whole thing mere weeks later.

"The last few months...have been difficult for shareholders, employees, and most unfortunately, many members of Netflix," wrote Netflix CEO Reed Hastings in a letter to shareholders. "We've hurt our hard-earned reputation, and stalled our domestic growth."

Indeed, Netflix lost 800,000 subscribers in the U.S. last quarter and expects to lose more by the end of December.  The company had a total of 23.8 million subscribers as of Sept. 30th with around 21.5 million customers having streaming subscriptions and just under 14 million having DVD subscriptions (most customers have both).  Netflix expects those numbers to drop to around 20 – 21.5 million streaming customers and 11.3 million DVD subscribers.

Hastings also warned shareholders that it will be unprofitable in upcoming quarters due partially to the costs involved with its service expansion into the UK and Ireland.

But what about game rentals?  It’s still unclear whether Netflix’s plans to offer console games in addition to movies died with Qwikster.

"We have yet to decide whether or not to offer video game discs," CEO Reed Hastings told Gamasutra. "The decision will have little financial impact either way."

Sources: CNN and Gamasutra

-Reporting from San Diego, GamePolitics Contributing Editor Andrew Eisen
 


Comments

Re: Netflix Loses 800k Subscribers, Game Rentals Still Up in ...

Netflix has a choice do a rollback or stagnant and die its funny because this all goes back to Netflix trying to buy the rights to one of Kevin Spacey's new shows yet they didn't want to share with anyone else but yet they wanted to stream other studios content...

So movie studios wanted a raise and now Netflix wants to do more Kevin Spacey shoes and so they have the nerve to raise the price again and look what happened.

 
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Andrew EisenYes, the Wii U upscales but rendering in a higher resolution looks a hell of a lot better.08/01/2014 - 10:35pm
Andrew EisenIt's pretty. Lots of videos of it floating around. Just search "Xenoblade dolphin" and you'll find them.08/01/2014 - 10:32pm
ZippyDSMleeThe WII upscales tho. Matthew: It might be becue cartoonish desings do not age as fast as presudo realisim.08/01/2014 - 10:29pm
Matthew WilsonPeople who have run the Mario Galaxy games on a emulator have said they look better then most xb1/ps4 games when upscaled, so it would be interesting to see a upscaled version of Xenoblade08/01/2014 - 9:24pm
Andrew EisenHeck, it would probably sell better to newbies anyway. Even with its awesome art direction, the game looked dated when it came out years ago. I imagine an SD version would be a tougher sell.08/01/2014 - 8:55pm
Andrew EisenBecause it would be cool, would serve the game's fantastic art direction well and encourage people who've already played it to buy it again.08/01/2014 - 7:42pm
ZippyDSMleeWhy bother with an HD relese just repack the damn thing and promote it since it will play on the WIIU anyway....08/01/2014 - 7:04pm
Andrew EisenPlus, with Nintendo carrying the Wii U almost all by itself, it could help plug one of the unfortunately inevitable release schedule gaps.08/01/2014 - 3:23pm
Andrew EisenAn HD re-release would be cool though. It's a great game (and quite the looker, especially when up-rezzed) and more people should play it (the game had a limited release at a time when the Wii was all but dead an buried).08/01/2014 - 3:21pm
E. Zachary KnightSo no, people are not going to need to play the Wii game to undstand or enjoy the Wii U game.08/01/2014 - 1:27pm
E. Zachary KnightFrom what I understand, the two games have as much to do with eachother as Final Fantasy and Final Fantasy 2.08/01/2014 - 1:26pm
MaskedPixelanteIt's my secret hope that Nintendo announces Xenoblade HD to be released in the leadup to Xenoblade Chronicles X, or at least a mass market version of the first game so that people aren't going into this one blind.08/01/2014 - 12:40pm
PHX CorpI'm going to do a test stream later today, if anyone is intrested07/31/2014 - 2:40pm
Andrew EisenYes, I'm such a big Nintendo dork that I read Nintendo's quarterly financial reports.07/31/2014 - 2:09pm
Andrew EisenCool tidbit - Mario Kart 8 sales account for more than half of total Wii U software sales for the last quarter even though it was only available for the last third.07/31/2014 - 2:09pm
Andrew EisenStill a pretty cool promotion. Unfortunately for me, I'm not interested in purchasing Mario Kart 8 and I already owned or didn't want any of the free games on offer.07/31/2014 - 1:43pm
Andrew EisenInteresting that EU had 10 games to choose from while North America only had four.07/31/2014 - 1:41pm
MaskedPixelanteIt certainly worked, I probably would never have bought Mario Kart 8 if it didn't come with a free copy of Wind Waker HD.07/31/2014 - 1:14pm
Andrew EisenI imagine will see similar promotions like "Buy Mario Kart 8 get a download code for one of these specific games" but almost certainly not for all of its (however you would define) biggest releases.07/31/2014 - 11:24am
MaskedPixelanteI wonder if Nintendo is going to be doing "buy one get one free" promos for all their biggest releases going forward.07/31/2014 - 10:48am
 

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