Netflix hacked off a lot of its customers when it enforced the regionalisation of its content by blocking out most of the world’s VPN connections. This meant that if you live in Italy you have to watch a much more limited range of content than Americna users. In fact you get the option to miss some important shows without any discount.
Then the outfit hit on a winning idea – let’s jack up the prices without actually giving the customers anything new. After all, it is a strategy which works for Apple.
However for some reason customers were not impressed with this strategy. Not only were they not getting the content they wanted, but they were also being asked to pay more for it.
Netflix said it added fewer video streaming subscribers than expected from April through June as some customers canceled the service ahead of a price increase, and the company’s shares fell 16 percent.
The dominant subscription video service on Monday also forecast slower-than-expected growth in U.S. and international markets in the current quarter.
“We are growing, but not as fast as we would like or have been,” the company said in its quarterly letter to shareholders.
The company signed up 1.7 million new customers in the quarter that ended in June. It had projected 2.5 million.
However analysts say that domestic subscriber growth slowed to a crawl … and domestic profits fuel their international losses.
In the June quarter, Netflix added 1.52 million subscribers in its international markets and 160,000 subscribers in the United States. Revenue reached $1.8 billion for the quarter.