Netflix admits it will end up with fewer subscribers than predicted, shrinks DVD-only count
Back in July, after announcing it would decouple unlimited movie streaming from unlimited DVD rentals and charge more to keep both, Netflix predicted it would end up with 25 million subscribers at the end of Q3. This morning it advised investors that prediction has been slashed by 1 million, however most of that shortfall is predicted to come from fewer DVD-only customers than expected, which is expected to come up 800,000 short. While we'll still have to wait for the actual Q3 results to see how things pan out, the company still claims its projection of 12 million subscribers to both services is right on. While it backtracked on the total numbers, it also outlined its reasoning for raising prices by improving the DVD business, raising more cash to spend on streaming licensing and ultimately "remain price aggressive" and keep its individual offerings at $7.99 each. Much of the kicking and screaming online indicted Netflix's streaming library for failing to live up to the new price, anyone surprised many cutters seem to be coming from the DVD-only side?
