Shares of Netflix were down a very unchill 15 percent today on news that the company hadn't added as many subscribers as expected, an outcome Business Insider calls a plunge in the company's stock. "Disrupting a big market can be bumpy," reads a letter to Netflix shareholders, "but the opportunity ahead is as big as ever and we continue to improve every aspect of our business."
Someone turning "Netflix and chill" into graffiti outside Netflix's Los Gatos HQ... pic.twitter.com/7nEre4ouvg— scott budman (@scottbudman) November 4, 2015
Venturebeat recalls that the company expected 2 million new subscribers internationally and 500,000 in the US for a total of 84 million subscribers. However, many more people than expected ditched their accounts amid a growing slew of competitors and a delayed $2 increase in price for longtime users. In total, the company ended the quarter with just 83.17 million subscribers.
But haven't they heard about Stranger Things and how great Winona is?!
The subscriber exodus was "coincident with the press coverage in early April of our plan to ungrandfather longer tenured members and remained elevated through the quarter," according to that letter to shareholders, which linked to the following Google Trends reo pointing to an uptick in searches for "netflix price increase."
"We think some members perceived the news as an impending new price increase rather than the completion of two years of grandfathering." Although CNet alludes to Netflix invoking the press as "an unusual move," it's entirely possible there was confusion on the part of readers and subscribers. "People don't like price increases, we know that," the AP quotes Netflix CEO Reed Hastings during a webcast review of the earnings numbers. "It is a necessary phase we must get through." Thank god using your friends' girlfriends parents account isn't a federal crime — or is it?