Netflix Subscriptions Drop, Despite Price Cut
The quarterly number of Netflix subscribers has gone down for the first time since the online DVD rental company's inception. Though the 6.8 to 6.74 million drop was small, it was enough to push the stock price down 16 percent yesterday from 6.8 to 6.74 million -- egged on, no doubt, by the recent $1 price drop in Netflix's most expensive plans.
Netflix, which pioneered the online DVD rental business, has recently been under pressure from Blockbuster, which, ironically, has also seen its profit drop ever since the advent of Netflix. The $1 price drop brought the Netflix plans in line with the Blockbuster subscriptions, price-wise, but Blockbuster's plan offers the added benefit of letting you return DVDs rented online to its brick and mortar stores, and exchange them for new movies on the spot.
Recently, Netflix launched its streaming movie site, which lets you watch many of the movies in your rental queue online on a PC. So far, Blockbuster isn't doing any such online movie download or viewing service. DVDs, like CDs, are on the way out, thanks to the increased accessibility and quality of downloaded movies. Blockbuster had better think about offering online downloads of some sort soon, or its temporary victory will be short-lived.
From TG Daily and AOL Money & Finance.
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Reader Comments (Page 1 of 2)
WMass @ Jul 24th 2007 11:41AM
Blockbuster holds an advantage with all their stores but I stick with Netflix because they are directly responsible for breaking Blockbuster's stranglehold and forcing them to totally change their ways at great benefit to consumers. Everyone should appreciate that fact, no matter which company gets your business.
Jane @ Jul 24th 2007 12:46PM
I LOVE NETFLIX !!!!!!!!!!!!!!!! I wish I would not have waited so long to start up. I highly recommend it!
stephen @ Jul 24th 2007 12:47PM
I prefer Netflix because I feel that they have more of a selection available. Especially under the Gay/Lesbian genre.
Don @ Jul 24th 2007 1:01PM
I like Netflix. I get movies through the mail
quicker than Blockbuster. Takes two days
compared to 5 days through Blockbuster. Plus,
I can watch previews of movies with Netflix.
RL @ Jul 24th 2007 1:41PM
Blockbuster all the way!!! You actually get extra movies with them. Especially when you have a 2 movie plan...you can wind up with 5 for the month....you get 2 from your query,then 2 when you return them to the store and you get one from the online coupon....all for under $6 now that's a bargin!!
Barbara @ Jul 28th 2007 8:08AM
I've been using Netflix for several years now, and they've gone through good and bad periods of customer service. They are next to impossible to get hold of by phone, which is frustrating when you're stuck with the effects of one of their bad customer service policies (think throttling). For instance, if they send a broken/unplayable DVD, they won't replace it until they get a returned DVD. I'll be getting a high def TV soon, and will get tivo at that time. Then Netflix gets dropped.
TEHRON @ Jul 29th 2007 2:32PM
COME ON BOB!! ITS AN ONLINE STORE! YOU WONT EVEN SEE THE GUY! LOL!
NOW THATS REAL HOMO-PHOBIA :)
THAT ASIDE..
NETFLIX IS GREAT! MAY IT LIVE LONG AND PROSPER.
"BALLBUSTER" STORES HAVE BEEN GOUGING FOR A LONG TIME NOW AND LIKE MANY OF THESE BIG COMPANIES, THEY NEEDED A WAKE UP CALL, NOW, THEY WANT TO PLAY FAIR TO THE CONSUMER.
THERES A LESSON TO BE LEARNED, I REALLY THINK IN THIS DAY AND AGE WHERE WE HAVE TO STRETCH A DOLLAR, WE AS AMERICANS SHOULD SHOW MORE COMPANIES WE MEAN BUSINESS WHEN WE SAY
"HELL NO! THIS IS EXPENSIVE!"
THE POWER IS IN THE PEOPLE.
AND OUR MONEY TO A LESSER EXTENT.
BK RADIO
Aaron T Noel @ Jul 31st 2007 3:12AM
I have a great point on the service but quickly I want to comment on "Bob." He is the reason this country is in turmoil with his 1920 way of thinking. Then he thanks God. Actually sir you are going to hell for hating, not the gay guy who made a remark about the gay and lesbian section at netflix. Bet you hate women and people of color too.
It was hard to part with netflix because I was on their bandwagon since they opened. Way ahead of their time. People still don't totally "get it" when it comes to online dvd programs. That said when blockbuster offered where you could return movies to the store and free coupons, I had to switch. Netflix got to the point where they wouldn't ship until they got their movies which was far different than at the beginning. Their prices jumped quickly. Times to get movies got slower. They started to employ the same tactics of the blockbusters of the world once they had the market cornered. Then Wal-Mart came along but didn't pose a real challenge. Then blockbuster. I didn't think anything of them at first because they did not do in store exchange. It was like a separate company(it wasn't of course). I get movies much faster with blockbuster. If I turn in 3 movies at the store for example, as soon as they check them in they ship my next movies. But wait there's more. I have 3 movies in hand already from exchanging them. If I get my movies next day, I can potentially have six movies out, no extra charge. Also I get 2 free in store rentals per month. Add that up and netflix just doesn't come close. I would not buy netflix stock, thats all I am saying. Like them or hate them, blockbuster right now is far superior.
laney @ Jul 31st 2007 3:04PM
The point of Netflix is that I don't have to GO TO THE STORE. I haven't been able to understand why that was a "selling point" for the Blockbuster plan.
NETFLIX RULES. IN PERPETUITY.
lin @ Jul 31st 2007 11:07PM
I started with Netflix, then switched to Blockbuster. I like that the quantity of movies I get can be, as pointed out by Aaron T Noel, more or less doubled with in-store exchanges. And I love the free rental coupon every month.
Yes, it's all a ploy to get renters out of their homes and back into the stores so they can stay in business, but why is that so bad? Complainy "laney," do you get your groceries delivered to your door, too? I fear the day when Americans tele-everything every single thing from their computers to their homes! And it's not obligatory - you don't need to swap them at the store if you don't want to.
If you like the number of movies you can get each month for the price at which you get them, and you're finding the titles you want, then you have the right company. So why is there even a debate?
*And why does someone always need to hate on gays (or minorities or women or hippies or people who chew cinnamon gum) with every single issue?? Let God deal with all of us when we get there. Let's just all play nice while we're here, and hope we make it in, ok? :)
cuteburger @ Aug 8th 2007 5:49PM
I choose Netflix because they did not sell out to SZony. They carry both HD DVD abd Blu-Ray.
richard @ Nov 6th 2007 1:45PM
Netflix would be better if it would let you pay by check like Blockbuster.
Sharon @ Nov 6th 2007 2:07PM
I don't understand how you get more of anything at Blockbuster over Netflix.
I stay home (no gas or wear and tear on my car)in my rural setting and wait for the mail man. Waiting right now for 2 movies from Netflix.
I have 3 at a time unlimited. I like TV programs that I can't get without spending lots of bucks and signing a 2 year contract. They send me new movies as fast as I can watch and return.
I often view 6 DVDS per week! These ususally contain 4 episodes each of things like CSI. Thats 180+ minutes per DVD. More if you watch the commentaries.
Tell me how Blockbuster can beat this!
Sharon @ Nov 6th 2007 2:09PM
There are a lot of crazy people in this world. They worry me.
Lori @ Nov 6th 2007 6:02PM
I'm very upset with Blockbuster right now. I never got notified that they decided to charge more for unlimitted rentals with the return envelope in the store. I went to return my envelopes one day and I had no more coupon and was told I could only get 5 instore rentals a month! I also have two accounts - one gives the coupon and the other does not!! Another mess Blockbuster has created! Just another way of charging me another $10.00 a month! I'm going to be cancelling soon and going back to my local library. Their free! I can get an entire season of any tv show for an entire week - free -and no waiting!
NetflixSUX @ Nov 6th 2007 7:11PM
I used to subscribe Netflix. I found out that Netflix has set limit for heavy rental customers. They tend to delay the mail. How did I find out? I called them and ask them why is my mailing getting slower than before. They said I exchanged movie too many per month. I told them go @&$* themselves, and I ended up close my account there. I signed up for online mailing customer at Blockbuster. I love it so much and already double what I got from Netflix per month, even I exchange 2 movies twice in same day! I have been Blockbuster customer more than 2 yrs! Thank god for not being Netflix customer no more! Netflix is piece of @&$#! Netflix belong "rainbow" people!
Now I say, Can Netflix beat this? NO @&#$ING WAY! Netflix customers are SUCKERS! No wonder those "rainbow" people is good at sucking! LOL
Wayne @ Nov 6th 2007 7:15PM
Also Blockbuster is right around the corner from my home. It takes me 3 min to walk over there and exchange the movies.
Sharon, you CANT beat this! SUCKER!
mindy @ Nov 7th 2007 1:09AM
LACKLUSTER, family guy got it right. They are overpriced and I am so surprised they haven't gone out of business sooner. Netflix rocks!!!
Matt @ Nov 7th 2007 12:47PM
We had Netflix for almost a year. The main office for us is approximately 90 miles away. We were getting 6 movies a month on the 1 at a time plan. We watched them imediately and I dropped them off at the post office the next morning on my way to work. Sometimes we would watch them before the end of the mail collection for that day and I would run them up to the P.O. After about 2 months we were getting 1 a week and it never changed. I wrote to Netflix to ask why it was taking a week to get our movies, we were getting them in 4 days at the start. Nothing changed. None playing DVD's take away 1 rental while you wait, plus most DVD's are dirty and you have to clean your player more often. Obviously anyone living in the city where the office is located is going to get faster service. We were disappointed and let them go. Some of the movies we rented we dollar-type rentals so the benefit wasn't there. I believe that anyone trying to get a bunch of movies in a short time is going to get mail delays.
I continue to purchase movies through Columbia House. Yes we would pay more but we own them and if you stay with them (like most people don't after they fulfill their obligation), you get some great specials. You earm Funcash dollars in exhange for free movies, Deal of the day where movies are around $5, sometimes free shipping and double and triple funcash per DVD. We average about $9 for each movie not counting the free ones we will get at the end of the year. That figured in would make them about $7 including shipping. We use this system as opposed to going to the theater. If you don't go to the theater you could own 2 movies for less than the price of 2 tickets and popcorn if you wait for it's DVD release.
Bill @ Nov 7th 2007 2:56PM
I use both. While the battle of the DVD titans rages I am enjoying the benefits. I have a Netflix 3 at a time deal at the discounted price. I have the $9.99 blockbusters package. Between the two I always have a movie to watch. I hope nothing changes. I love the flexibility of getting "series" like Rome, The Wire from Netflix and "pop" films from Blockbuster.