Netflix Shares Drop As Subscriber Forecast Falls by 1 Million

Netflix
Oof.

Eeek!

For the quarter, the company now expects to finish with 21.8 million streaming subscribers, down from a previously expected 22 million, and 14.2 million DVD subscribers, down from the old forecast of 15 million.

Streaming only subs are now expected to be 9.8 million, down from 10 million, with DVD only down to 2.2 million, from 3 million. The company still sees 12 million subscribers who use both services.

NFLX taking a beating today, down 19 percent.

Netflix knew that revamping its pricing — essentially raising prices for people who subscribe to streaming and DVD-by-mail services — would rankle some customers and lead to a drop in a subscriptions. But I’m not sure they expected this.

The takeaway here is that Netflix better get on signing some exclusive streaming content deals, like, yesterday. And they better be big. Even bigger than Starz.

This guy here says Netflix needs HBO. Well, sure they do. Who wouldn’t love to host that library? Not that that’s in any way realistic right now. But point taken. Netflix needs a big content deal and they need it now.

Meanwhile, Gawker is more optimistic, in a kind of Louis C.K. “everything’s-amazing-and-nobody’s-happy” kind of way:

For $16 per month, Netflix will instantly show you any number of movies and TV shows at the click of a button, and if there’s a movie not in their library they will mail a DVD of it to you. Many of us obnoxious judgmental techies have become jaded about this small miracle, but it’s still very cool, and Netflix is going to be fine.