How Netflix price increases hurt subscriber growth
- The video service blamed a recent $1 price increase for new customers, and offered a guarded outlook for this period.
- Earlier the shares posted their biggest intraday drop since July 2012
- Now so many people are watching TV over the Internet, it’s harder for Netflix to add customers in the US
- Los Gatos, California-based Netflix had gained 22 percent this year
- HBO said yesterday it will offer a streaming video service independent of pay-TV subscriptions next year.
Netflix tumbled the most in more than two years after saying a price increase had slowed subscriber growth, while coming competition from HBO gives the world’s largest subscription-streaming service a new challenge.In my opinion I think the price increase will increase the demand to watch movies on other platforms like at cinemas, or on sky box offices. The content on Netflix is always out of date and never has the most recent season of a series online.
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