Double Whammy for Netflix…
On the same day their price increase took effect news broke that Starz will pull their content from the Netflix lineup in February 2012.
I cant’ figure out why Netflix would balk about a price increase from one of their main content providers. They expected their own customers shell out more and take it stride, asking us to compare the price increase to a fancy cup of overpriced coffee…I think they called it latte,needless to say I don’t see the comparison.
Reed Hastings even promised “We will take the increased revenue and mostly spend it on more streaming content… we want to be able to have stronger and stronger streaming”
Note to Reed: Unless you have a major content provider waiting in the wings, loosing Starz is less content, not more. Also increasing the pricing structure for DVD rentals will turn customers away, loosing that revenue stream. I believe that many of your streaming customers will be looking elsewhere as well, especially after Starz is no longer available.
I’m predicting tough times ahead for Netflix. I think Wall Street agrees, Netflix stocks fell over 8.5% in after hours trading.
