Netflix US subscriber count drops by 800k in Q3, 21.45 million still streaming

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.

Netflix US subscriber count drops by 800k in Q3, 21.45 million still streaming originally appeared on Engadget on Mon, 24 Oct 2011 16:17:00 EDT. Please see our terms for use of feeds.

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Netflix backtracks on Qwikster, will keep DVDs and streaming under the same URL

The Netflix Contrition Tour 2011 continues today, as the company announced today that it won’t be spinning off DVD-by-mail rentals into a new company called Qwikster. While the plan for DVD operations to be separated internally appears to still be under way (no word yet on the promised videogame rental option), for customers things will stay the same, with one login and one website. While the retreat will probably prompt even more speculation about the company’s true plans, CEO Reed Hastings has issued yet another apology to customers, admitting Netflix may have moved too fast this time.

Another sticky issue that’s not so easily dealt with is the recent pricing change that took effect last month. While many speculated at the time about what percentage of customers would see higher prices as a result, spokesperson Steve Swasey reveals it affected about half of the company’s subscribers. For the rest who had signed up for the $7.99-streaming only package (an option selected by the overwhelming majority in the quarter before the change) prices didn’t go up at all. We have our own ideas about what the pricing should be, but it seems Netflix has finally realized not all customers got the message that it’s a streaming company now, and tacking DVDs onto its new primary offering for only $2 extra just didn’t work. Since all that uproar Netflix has announced a few new / expanded content deals for its streaming service, with Discovery and exclusive rights to previous seasons of The Walking Dead from AMC. But with renewed competition from the likes of Blockbuster and Amazon only time will tell if it can do enough to stop the subscriber bleeding. The Netflix Q3 earnings report is due October 24th — think that will be an interesting call to listen in on?

Continue reading Netflix backtracks on Qwikster, will keep DVDs and streaming under the same URL

Netflix backtracks on Qwikster, will keep DVDs and streaming under the same URL originally appeared on Engadget on Mon, 10 Oct 2011 08:00:00 EDT. Please see our terms for use of feeds.

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Netflix abruptly yanks unavailable streaming movies from ‘saved’ view

Netflix’s website has suddenly changed (again), removing any queued Watch Instantly titles that aren’t currently available from view. Previously they entered the saved section of the queue, keeping a slot full and occasionally indicating when the movie would be licensed for viewing again. A blog post published after the fact suggests inactive titles on the list made things complicated (but not too complicated for the DVD queue, where the saved list remains), and that while they’re invisible, they’re not deleted and will still reappear when (if) a title is available to stream again. Users hugging the 500-item limit in their queue still have those ghost titles taking up a slot, although we’re told that will be fixed in the next few days.

If you want to see the list again just to go over it or queue them on disc, Hacking Netflix indicates FeedFliks (one of our favorite alternative queue management sites along with InstantWatcher) is still able to show your expired titles — for now. Just a bit of advice for Netflix: If you’re trying to show some appreciation to the millions of customers you expect to stick around through Q3 despite higher prices and an uncertain content licensing future, making arbitrary and unannounced changes to the way we access our data is the wrong way to do it. As it is, we’re forced to wonder if this move is less about streamlining and more about hiding the amount of titles that are going offline lately or in the near future.

Netflix abruptly yanks unavailable streaming movies from ‘saved’ view originally appeared on Engadget on Sun, 18 Sep 2011 19:02:00 EDT. Please see our terms for use of feeds.

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Netflix admits it will end up with fewer subscribers than predicted, shrinks DVD-only count

Back in July, after announcing it would decouple unlimited movie streaming from unlimited DVD rentals and charge more to keep both, Netflix predicted it would end up with 25 million subscribers at the end of Q3. This morning it advised investors that prediction has been slashed by 1 million, however most of that shortfall is predicted to come from fewer DVD-only customers than expected, which is expected to come up 800,000 short. While we’ll still have to wait for the actual Q3 results to see how things pan out, the company still claims its projection of 12 million subscribers to both services is right on. While it backtracked on the total numbers, it also outlined its reasoning for raising prices by improving the DVD business, raising more cash to spend on streaming licensing and ultimately “remain price aggressive” and keep its individual offerings at $7.99 each. Much of the kicking and screaming online indicted Netflix’s streaming library for failing to live up to the new price, anyone surprised many cutters seem to be coming from the DVD-only side?

Netflix admits it will end up with fewer subscribers than predicted, shrinks DVD-only count originally appeared on Engadget on Thu, 15 Sep 2011 08:50:00 EDT. Please see our terms for use of feeds.

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Did Netflix just start limiting users to one movie stream at a time? No

Over the last couple of days, some Netflix users have reported getting error messages whenever they tried to view Watch Instantly video streams on two different devices at the same time. While some reports have suggested that along with instituting a price hike September 1st it also decided to start cracking down on multiple streams, it turns out there’s a simpler explanation. According to spokesman Steve Swasey, the policy is still the same and no Netflix member is limited to less than two streams at once. The messages people are seeing indicating otherwise? An “error” the company is correcting. Glitches suck, and are becoming a bit too routine on the service for our liking — Hacking Netflix reports another blip caused S1 of Star Trek: TNG to disappear temporarily over the weekend — but the rumors of a change in policy just aren’t true, so keep that subscription canceling finger holstered for now.

Did Netflix just start limiting users to one movie stream at a time? No originally appeared on Engadget on Wed, 07 Sep 2011 11:37:00 EDT. Please see our terms for use of feeds.

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Netflix lands in Brazil, 43 other Latin American countries within the week

Netflix in Latin America

Netflix promised our friends in Central and South America would soon be able to enjoy the pleasures of Watch Instantly. Starting today with Brazil, and with 43 other Latin American countries to follow before September 12th, the pioneering streaming video service is making good on that promise. Customers in the land of Carnival can enjoy a free one-month trial, after which a subscription will run BR$14.99 a month. The roll out will be staggered over the coming days, with most areas getting a price point equivalent to $7.99 in American currency and some having both English and Spanish language options. For more details check out the PR after the break and the chart above.

[Thanks, Nicolas]

Continue reading Netflix lands in Brazil, 43 other Latin American countries within the week

Netflix lands in Brazil, 43 other Latin American countries within the week originally appeared on Engadget on Mon, 05 Sep 2011 11:52:00 EDT. Please see our terms for use of feeds.

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Starz ends renewal negotiations with Netflix, will pull movies from streaming in February

Starz has apparently decided it can live without the hundreds of millions of dollars a renewal of its content licensing deal with Netflix was expected to bring and announced an end to negotiations today. According to the Company Town blog, talks broke down over Starz’s insistence that Netflix implement tiered pricing, and charge customers even more for access to its content. That means when the current deal expires on February 28, 2012, they will all go away, including a number of its newer release flicks from Sony (already pulled) and Disney that Starz has exclusive licenses to and Starz content like Camelot and Spartacus. To make matters worse, all of this is going down the same day as a price hike makes it more expensive to keep both disc and streaming services.

While Starz claims the move is a part of its strategy to “protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content” as well as “evaluate new opportunities”, Netflix spokesman Steve Swasey is quoted as saying it can redirect the Starz money to deals with other content providers to “maintain or even improve the Netflix experience.” Beyond Starz, in the US Netflix also has access to newer movies from its deals with Epix and a few smaller distributors like Relativity Media. Check Starz’s statement in full after the break, and let us know if this is changing your answer to yesterday’s poll question.

Continue reading Starz ends renewal negotiations with Netflix, will pull movies from streaming in February

Starz ends renewal negotiations with Netflix, will pull movies from streaming in February originally appeared on Engadget on Thu, 01 Sep 2011 21:24:00 EDT. Please see our terms for use of feeds.

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Netflix price hike kicks in tomorrow, but you may not have to change right away

The time is running out on August, and with it goes the existence of Netflix’s streaming and disc services as a single package for $7.99. Keeping both (on the 1-disc plan) will require a $15.98 payout every month starting tomorrow, but if you’re one of the many crying loud and often that they’ll downgrade or cancel rather than pay more then hang on — you may be able to squeeze a few extra days out of your current package. Hacking Netflix points out that the price won’t actually switch until your “Next Billing Date” after September 1st, but you should change two days ahead to avoid being billed. For us that’s not until the 17th, so we have a couple more weeks to continue not watching the rented discs that have been languishing on our coffee tables without paying extra for the privilege. Your date may vary, so check out your account page to find out the specifics. Of course, we are wondering that after the shock has worn off, is everyone still escaping to friendlier locales, scaling back their Netflix subs or just eating the extra charge? Let us know in the poll below.

View Poll

Netflix price hike kicks in tomorrow, but you may not have to change right away originally appeared on Engadget on Wed, 31 Aug 2011 21:28:00 EDT. Please see our terms for use of feeds.

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Netflix dons its square pants with ‘Just for Kids’ section trial

Worried that Netflix isn’t doing enough to appeal to the under-10 set? Good news, the movie rental giant has begun testing a “Just for Kids” section, rolling out the feature to a limited number of subscribers. Eligible users will find a tab just to the right of the Watch Instantly button. At the top of the new page is a series of familiar children’s characters, including the likes of Spongebob, Popeye, and, yep, the Jonas Brothers. Each character has its own landing page with easily accessible content. We reached out to Netflix for more information on the matter, and the company would only confirm that the feature is still in testing mode. Given the amount of nostalgia currently available, we suspect that kids of all ages will be pitching in with the trial.

Netflix dons its square pants with ‘Just for Kids’ section trial originally appeared on Engadget on Fri, 12 Aug 2011 19:17:00 EDT. Please see our terms for use of feeds.

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Netflix Watch Instantly streaming now works on ChromeOS, when it’s working

It didn’t make launch as was originally promised, but today the Netflix Twitter account officially announced streaming access is operational on Chromebooks (when it’s not suffering an outage, like it was last night during Amazon’s cloud server troubles). The Netflix ChromeOS plugin jumping to 1.0.2 a few days ago was a good indication it was on the way, but now you can take your CR-48s, Series 5s and the like straight to the Chrome Web Store and get outfitted for some Watch Instantly streaming. Unfortunately, despite rumors that it’s on the way in the next year or so, there’s no change for other environments outside of Silverlight-compatible OS X and Windows, but Linux users can always dream, right?

[Thanks to everyone who sent this in]

Netflix Watch Instantly streaming now works on ChromeOS, when it’s working originally appeared on Engadget on Tue, 09 Aug 2011 19:28:00 EDT. Please see our terms for use of feeds.

Permalink   |  sourceChrome Web Store, @Netflix (Twitter)  | Email this | Comments