Since Netflix announced its new pricing scheme — one which raises the price of a joint DVD and streaming plan by 60% — most subscribers (including us) were hella tight. According to a recent report from The Diffusion Group, the next six months could see the Big Red movie service losing 2.0 to 2.5 million dual-service subscribers. It seems that users are scattering like roaches to settle for alternatives like Redbox, Hulu, and Amazon Video.
The weather forecast isn't all that bad for Reed Hastings and co. It seems that more dual-service subscribers would rather downgrade to a single-service plan (see: watch instantly) instead of leaving Netflix entirely. Maybe this was their goal all along? The company has been documented as saying "DVDs are dead," so pushing a significant amount of people towards only video streaming could have been the plan.
Netflix's stock has dropped $25 during morning trading. Should investors and the company remain skittish at the warning of slower growth?
[via TDG]
