It appears Netflix has some stingy users, with its second-quarter report confirmed the streaming service supplier lost a whopping 126,000 US subscribers – after it raised its prices.
Earlier this year, Netflix hiked costs by anywhere between 13 and 18 %, relying on its services.
That took its hottest plan, which provides customers two simultaneous streams, to US$13 (AU$18.37) a month – up from US$11 – and its cheaper US$8 plan to US$9 (AU$12.79).
And it’s clear US customers didn’t love the change. It’s the first time the corporate lost home streaming customers because it started its service 12 years ago, The New York Times reported.
And never only did it lose subscribers; it truly undershot the number of prospects it anticipated to sign up worldwide for the period – only 2.7 million subscribers signed up compared to the five million its investors expected.
On top of that, Netflix stock fell a whopping 9 % in early trading on Thursday. However, chief executive Reed Hastings didn’t bat an eyelid.
“Our position is great,” Hastings reportedly instructed analysts after the release of the earnings report.
Regardless of the bad news, Netflix forecasts an additional seven million subscribers will join this quarter after the addition of Stranger Things.
The service additionally stays the nation’s largest internet tv network, with over 60 million paying subscribers within the US, and 151 million subscribers globally.