Netflix caved


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The market capitalization of streaming Netflix fell by $ 24 billion due to higher prices for services. About it writes Daily Mail.

The cause of the fall is the peculiarity of the slowing growth of subscribers in the last six days. Many users were not satisfied with the increase in the cost of the tariff plan from 11 to 13 dollars a month. Worldwide growth of subscribers amounted to only 2.7 million, well below the company’s forecast of five million. As a result, shares of Netflix fell by 15 percent.

The sharp slowdown in global growth Netflix, including the first quarterly fall in the number of subscribers from the United States in 2011, raises the question of how much people are willing to pay for streaming services. From April to June the company lost 126 thousand subscribers from the United States, accounting for less than one percent of its 60,1 million paid subscriptions in the country. Also at this point the serious competition of the company consists of Disney, Apple and other media companies.

Analysts say that many users thought about the ratio of price to quality. Competitors Netflix has benefited from the experience of the service. For example, the website Hulu has reduced the rate from 8 to 6 dollars per month, and the cost of the services to Disney Plus, which will be launched in November this year, will not initially exceed the price of Netflix.

Video, photo All from Russia.


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