After a rough patch marked by indecision and just plain bad decisions, Netflix was due for some damage to its bottom line. Last quarter, the company lost 800,000 subscribers, following a price hike, a u-turn on a service split, and lost content.
The mass cancellations leaves Netflix with a still impressive 23.79 million subscribers and quarterly earnings of $822 million in revenue, up from estimates of about $811.79 million for the period. Yet the money numbers are altogether misleading, considering Netflix hiked prices by 60% for its standard combo DVD and streaming package back in August—from $10 to $16—so naturally, they were bound to make some more cash. And even with the news of a somewhat optimistic financial report, the company’s stock fell by 27% to $85 a share—prices were as high as $300 a share during the summer.
How the next few quarters play out could very well decide the fate of Netflix.