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Netflix gets crushed following earnings report

Two weeks ago, Netflix announced that it had separated its DVD and streaming services, which means if you want both, the price just increased substantially.

1-DVD-at-time unlimited plans will cost $7.99 per month, the cheapest it has ever been, but if you want unlimited streaming you will need to pay an additional $7.99. That is a $6 price hike if you subscribe to the current $9.99 mixed plan.



Tonight, the company's stock is being crushed following an earnings report that was "okay" at best.

The stock is down 10 percent as the company said it expects much slower subscriber growth into the future due to the price raise.

Additionally, the company put rumors to rest that it will be integrating with Facebook, saying they will indeed, but not in the U.S due to video sharing restrictions.

Furthermore, 75 percent of new subscribers were streaming-only, and Netflix says it expects they will have 12 million DVD+Streaming, 10 million streaming-only, and 3 million DVD-only customers by the end of the next quarter. In their mind, DVD-only subscriptions have "peaked" noted the rental company.

Written by: Andre Yoskowitz @ 26 Jul 2011 1:00

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• 23 comments

• xaznboitx

  why bother doing the dvd when you can stream without waiting for them to get the disc back and wait again for them to ship out the 2nd dvd. Unless you're worry about bandwidth used.

  26.7.2011 02:39 #1

• dab0ne

  Originally posted by xaznboitx: why bother doing the dvd when you can stream without waiting for them to get the disc back and wait again for them to ship out the 2nd dvd. Unless you're worry about bandwidth used. Yea. Red box your DVD's and stream for your instant view.
  

  26.7.2011 03:19 #2

• KSib

  Originally posted by xaznboitx: why bother doing the dvd when you can stream without waiting for them to get the disc back and wait again for them to ship out the 2nd dvd. Unless you're worry about bandwidth used. Because not all of those titles are streamable. Kinda lame huh?
  

  26.7.2011 04:12 #3

• LordRuss

  Some new generation "Good Idea Bomb" went off prematurely in the head office... Somebody's kid graduated business college & dad told the head of the department to let the kid have a go at it & this is what the twerp came up with...
  
  Some things are best left un-F'ed with. This just so happens to have been one of them. Had they not $5 & $7 dollar-ed me every other month I wouldn't have dropped their service 2 to 3 years ago. Now they pull this shiner & folks are getting creative about spreading the wealth to Netnuts competitors.
  
  Talk about hiring a $1000 hooker to tell you you're hung like a horse & then having the gall to believe her! THEN, go around town trying to convince everybody else... Betty Ford, sign them up. Or should that be Dr. Drew for this generation?
  

  http://onlyinrussellsworld.blogspot.com

  26.7.2011 11:49 #4

• KillerBug

  Originally posted by KSib: Originally posted by xaznboitx: why bother doing the dvd when you can stream without waiting for them to get the disc back and wait again for them to ship out the 2nd dvd. Unless you're worry about bandwidth used. Because not all of those titles are streamable. Kinda lame huh? Yeah...very lame. Honestly, I expected them to discontinue dvd/bd disk service or jack up the price some huge percentage once they had a good streaming selection...but they never seemed to get a good streaming selection. Honestly, the streaming still feels like it is in a beta stage.
  

  
  

  26.7.2011 12:02 #5

• molsen

  Originally posted by KillerBug: Originally posted by KSib: Originally posted by xaznboitx: why bother doing the dvd when you can stream without waiting for them to get the disc back and wait again for them to ship out the 2nd dvd. Unless you're worry about bandwidth used. Because not all of those titles are streamable. Kinda lame huh? Yeah...very lame. Honestly, I expected them to discontinue dvd/bd disk service or jack up the price some huge percentage once they had a good streaming selection...but they never seemed to get a good streaming selection. Honestly, the streaming still feels like it is in a beta stage. I totally agree. When I do stream, it is usually so grainy, I'm not really happy with. I do watch on a 52" TV. On the computer monitor it seems worse.

  26.7.2011 12:10 #6

• biver

  Originally posted by KillerBug: Originally posted by KSib: Originally posted by xaznboitx: why bother doing the dvd when you can stream without waiting for them to get the disc back and wait again for them to ship out the 2nd dvd. Unless you're worry about bandwidth used. Because not all of those titles are streamable. Kinda lame huh? Yeah...very lame. Honestly, I expected them to discontinue dvd/bd disk service or jack up the price some huge percentage once they had a good streaming selection...but they never seemed to get a good streaming selection. Honestly, the streaming still feels like it is in a beta stage. Agreed, I have flipped through thousands of crappy movies on netflix, plus the quality blows - bring back hd-dvd (sorry I cant let it go)
  

  26.7.2011 13:37 #7

• netflix sucks now (unverified)

  most of the good titles are not streamable!!! i hate netflix!!!

  26.7.2011 15:00 #8

• Hyasuma

  yea, I can't even stream Transformer 1 and 2...are u serious???
  

  26.7.2011 16:49 #9

• Xian

  I am going to go back to the DVD only plan. I looked at my streaming queue and only one was only available on streaming, where none of my DVD queue was available for streaming.
  
  I tend to watch TV box sets like the Sopranos, True Blood, Oz, The Wire, or others that are not at Redbox and not on streaming.
  
  With my ISP having started bandwidth caps a couple months ago, that's just one more incentive for me to go the DVD only route, so I will save about $4 from what I have been paying.

  26.7.2011 16:51 #10

• Jeffrey_P

  Some people like me would rather still have a hard copy.
  Streaming still does not have the audio video quality a Blu-Ray or even a DVD disk does.
  It's a waste of good A/V equipment if you are smug enough to expect the same quality.
  I only streamed Weeds and Californication because they are Showtime productions. Not worth it. I believe you can purchase the titles on DVD.
  
  Does that help?
  Jeff
  

  Cars, Guitars & Radiation.

  26.7.2011 16:59 #11

• DVDBack23

  This should be pretty clear to everyone who has used it..Netflix streaming is only good for TV (except for its lack of HBO).
  

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  26.7.2011 17:12 #12

• buxtahuda

  Originally posted by DVDBack23: This should be pretty clear to everyone who has used it..Netflix streaming is only good for TV (except for its lack of HBO). Seconded, to a degree. I do like finding those old gems of movies I haven't seen in years, and the horror section is properly hilarious. But all in all, getting to not be worth it considering bandwidth throttling, my terrible local lines, and the fact that for some reason they can keep hundreds upon hundreds of physical DVD's to ship out but someone can't take an hour a day to start moving them to the streaming database...
  

  ~*Livin' Electronicallly*~

  26.7.2011 17:37 #13

• Jeffrey_P

  Originally posted by buxtahuda: Originally posted by DVDBack23: This should be pretty clear to everyone who has used it..Netflix streaming is only good for TV (except for its lack of HBO). Seconded, to a degree. I do like finding those old gems of movies I haven't seen in years, and the horror section is properly hilarious. But all in all, getting to not be worth it considering bandwidth throttling, my terrible local lines, and the fact that for some reason they can keep hundreds upon hundreds of physical DVD's to ship out but someone can't take an hour a day to start moving them to the streaming database... I have a very fast internet connection. Still when I streamed the few times I did, the video was intermittently pixelated for x amount of time. I do not think Qwest throttles down as of yet and my PC has the hardware to handle things.. So what is the problem?
  Like I said, the audio Video is sub par. If people do not mind the poor quality let them be the sucker minions who fall for the BS.
  
  Jeff

  26.7.2011 18:54 #14

• Mr_Bill06

  Streaming can be great but I think just so many places are not ready to have full blown DVD and Blu-ray streamed to the TV. The way ISP's are capping internet and slowing speeds to fight people from turning to streaming and online entertainment will never let this happen until something is down about that. I have a 7mb line and streaming to a 40" 720p Samsung looks alright there SD stuff is not great but is watchable and there "HD" big LOL there is like DVD quality, some HD it is. Like I said we should not go blaming Netflix about there low bit-rate streaming go to the ISP's and complain about there anti competitive ways. Where I am in Canada they want you to pay more for less, and they never plan on fixing there aging equipment the reason they say for limiting and price increases. They want us to pay more for less and to kill the competition both indie ISP's and Netflix like services.
  

  26.7.2011 20:34 #15

• emugamer

  They are pretty stupid to do this when the economy sucks. $9.99/month charged to a credit card is more likely to go unnoticed and forgotten. Start telling people that they need to pay more and they realize that they don't even need the whole package.

  26.7.2011 21:34 #16

• Jeffrey_P

  I have a theoretical 40 Mbps fiber optic DSL connection which according to speed test http://www.speedtest.net/index.php?nojs=1 maxes out @ 38 Mbps DL speed. Plenty of good PC hardware, no throttling down from my ISP. If this setup cannot stream silky smooth SD res, what seems to be the problem? If HD data is streamed the problem can only get worse.
  
  Of course, when ISP's advertize a fiber optic connection it does not mean the whole network is 100% fiber optic. In most cases there is an analog interface somewhere.
  Tonight:
  http://www.speedtest.net/result/1403790218.png
  Jeff
  

  Cars, Guitars & Radiation.

  26.7.2011 21:51 #17

• buxtahuda

  Originally posted by Jeffrey_P: I have a theoretical 40 Mbps fiber optic *drool* I wish. I pay over $60 a month for a 10Mbps connection... And never get above 2Mb. Try calling the company and they tell you that the speed test you're using is wrong, use the one on their site. Then that one tells you you're doing EXACTLY what you pay for, and shows a secondary "result" for the same speed from the first site I was using. Tell them they're scamming you and you won't stand for it and you go through hours of holding and seconds of talking only to be transferred to another hold.

  27.7.2011 09:27 #18

• Jeffrey_P

  Originally posted by buxtahuda: Originally posted by Jeffrey_P: I have a theoretical 40 Mbps fiber optic *drool* I wish. I pay over $60 a month for a 10Mbps connection... And never get above 2Mb. Try calling the company and they tell you that the speed test you're using is wrong, use the one on their site. Then that one tells you you're doing EXACTLY what you pay for, and shows a secondary "result" for the same speed from the first site I was using. Tell them they're scamming you and you won't stand for it and you go through hours of holding and seconds of talking only to be transferred to another hold.
  Thanks for the info.
  I have a package deal through Qwest. DSL, HDTV/DTV and an old fashion land line.
  
  Edit:
  Qwest speed test running a lot of stuff in the background
  
  
  
  
  Looks like it may be the same server that Speed Test runs the test on. At least both servers are located in Phoenix.
  
  
  Jeff
  

  Cars, Guitars & Radiation.

  27.7.2011 09:55 #19

• emugamer

  Just cancelled my Netflix. Hate to do this to them, but took a look at my expenses and started seeing where I can trim the fat. Maybe I'll join up again in a few months.

  30.7.2011 08:02 #20

• FredBun

  I saw how this sreaming works at nieghbors, they can stick it were the sun don't shine, the quality is horrible, I tought I was watching VHS again, and no, don't anyway post back oh this guy didn't have the right equipment etc. he has all the latest and is tech savvy, plus I also saw the same results at others peoples home, what a rip.
  

  5.8.2011 23:23 #21

• buxtahuda

  Btw, Jeffrey_P, I live in the south-east and use CableOne. I wish I could go DSL, but all the local residential connections are kind of ridiculously slow and commercial connections just not worth the price (yet). I've recently started getting between 5 and 7 mbit download, but due to old lines going through the whole town you can't keep any kind of solid connection.
  
  Anywho, as much as I've loved Netflix over the years, I'll have to be cancelling them soon as well. We get "Presented in HD" on my brother's xbox all the time and it still looks like a terribly boot-legged copy or, yeah, a VHS.
  
  Time to look at BlockBuster or just go straight up streaming from MegaVideo/random sites. Get about the same quality...
  

  ~*Livin' Electronicallly*~

  6.8.2011 08:50 #22

• ruff4life

  Originally posted by netflix sucks now: most of the good titles are not streamable!!! i hate netflix!!! I actually use Netflix and Hulu combo for streaming. I have a 50 mbs download and both Netflix and Hulu put out some pretty good quality video. I actually turned off dish about 4 months ago and I truly have to say that paying close to $20 a month to stream vs 120 for a bunch of channels that I never watch is a great recession relief. The only limitations I have seen is what has already been stated in above posts and I refuse to pay more for the dvd package. And for whatever I can't see through either service, there are always other means of obtaining and streaming HD content.
  These companies are just making it easier for me to watch crap I wouldn't normally watch.

  6.8.2011 10:22 #23