Netflix nudges projections down
In July, Netflix said it expected to have 25 million customers by the end of the third quarter. But now the company says it will be more like 24 million, with estimates on each of its categories (DVD only, streaming, combo) taking a hit accordingly. Turns out people weren't bluffing when they said they'd walk away from the rate increase Netflix rolled out over the summer.
"Despite the guidance revision, we remain convinced that the splitting of our services was the right long-term strategic choice," Netflix said in a statement.
That may be, but the market seems very worried about the short term. Immediately after Netflix announced the price hike, Wall Street seemed elated and the company's stock soared past $300. But since then, the customer backlash and Netflix's recent struggles acquiring content have eroded investor confidence.
All I know is Breaking Bad is now on Netflix and I'm about to get sucked into it.