Netflix in free fall, what does it mean for subscribers?
(CBS) - Netflix released its third quarter financial results Monday and it was shocking. The company lost over 800,000 subscribers in just three months.
Full coverage of Netflix on Tech Talk
It began in July when Netflix split its DVD service from its online video streaming plan. No longer would subscribers with the DVD plan be able to stream unlimited movies for $9.99. Each service would cost customers $7.99, which meant it would be $16 for both DVDs and streaming.
Customers were up in arms over a 59 percent fee hike.
Netflix quickly launched the tragically-named Qwikster, which would be the DVD side of the business. Didn't they realize the "-ster" suffix trend went out with Friendster? What's next, FlixSpace?
Netflix's saga: The dark side of creative destruction
Netflix socks subscribers with 59% price hike
Why is Netflix raising its prices?
Netflix founder and chief executive officer Reed Hastings realized his mistake, killed Qwikster and apologized to customers in a blog post.
In the midst of all that, Starz pulled out of negotiations for renewal. That means come February of 2012, no more films from Disney Studios and Sony Pictures. And HBO has not, and will not, sign a deal with Netflix.
Although the company is correcting its course, it hasn't been able to stop bleeding subscribers. If you're still hanging on to your Netflix account, what does this company turmoil mean for you?
As far as we know, the company still has a few deals that make the streaming service good, not perfect.
Netflix still has a deal with the cable channel Epix which offers movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer. Not to mention a deal with DreamWorks that begins in 2013. In the spring, Miramax signed a deal to offer its library to Netflix customers that took effect this summer.
These deals mainly affect the online streaming service. You'll still be able to "rent" most DVDs through Netflix.
I'm going to risk being ridiculed and admit that I'm still a Netflix streaming subscriber. Don't judge me!
Is it perfect? No, but the $7.99 online streaming plan works for me because I'm not home often enough to watch movies and I don't subscribe to cable, but I do like having television shows on while I'm doing chores at home.
I may not know what's going on with the Kardashians, but I do get to have Mad Men marathons.
