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Is Netflix’s price hike to blame for its lackluster Q2 earnings results?

More than seven months after announcing a huge international expansion, Netflix expected to see a big bump in its subscriber base. But instead of the 2.5 million new subscribers projected for the second quarter, Netflix only saw a net total of 1.7 million.  In its letter to shareholders, Netflix partly blamed this on the price … Continue reading “Is Netflix’s price hike to blame for its lackluster Q2 earnings results?”

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More than seven months after announcing a huge international expansion, Netflix expected to see a big bump in its subscriber base. But instead of the 2.5 million new subscribers projected for the second quarter, Netflix only saw a net total of 1.7 million. 

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In its letter to shareholders, Netflix partly blamed this on the price increase experienced by existing members who were “grandfathered” into its old rate of $7.99 per month—people who are now being charged $9.99 per month—as well as consumer misconceptions and “associated media coverage.” Sure! But what Netflix refers to as “our plan to un­-grandfather longer tenured members” is clearly a price hike. 

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About the author

John Paul Titlow is a writer at Fast Company focused on music and technology, among other things. Find me here: Twitter: @johnpaul Instagram: @feralcatcolonist

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