The infamous Netflix price hike went into effect earlier this month. Subscribers were not happy at all about Netflix splitting up its unlimited streaming and DVD renting services while charging full price for both. Many subscribers decided to cut back by only having an unlimited streaming option. Netflix was expecting this and was actually surprised people were angrier about this. It appears users decided to let their dollars do the talking as Netflix has cut its expected subscribers by a cool million.
Although Netflix didn’t expect to only have 24 million subscribers instead of 25 million, it remains confident this shift won’t have a big effect on the amount of money it intends to make. The vast majority of lost subscriptions came from DVD-only customers. Netflix expected to have 3 million DVD subscribers, but found itself only having 2.2 million subscribers. Netflix’s streaming numbers didn’t take as large a hit. Netflix now expects to have 9.8 million streaming-only subscribers as opposed to the 10 million it expected.
Netflix still expects the extra money it can earn from splitting the two subscriptions will allow it to license more content for its streaming customers. When you add that extra revenue to the $300 million Netflix is expected to save from Starz, that should make for some interesting licensing negotiations.