Netflix shares plummet 25%

Netflix’s stock price fell 25% last Wednesday, 15, after the company revealed a drop in its subscriber forecast. In the quarterly earnings report, the company revealed that despite the increase in revenues to US $ 59 million in relation to 2013, it was unable to reach the expected number of new customers of 3.7 million.

In a letter to shareholders, the company blames the increase in prices for the decrease in the number of new subscribers. The estimate was readjusted. For the last quarter, the forecast is to reach 4 million new customers.

According to experts, the company has a solid base and should recover without difficulties.

In addition to the increase in the amount charged, Netflix must face yet another difficulty to reach the estimated number. Last Wednesday, HBO CEO Richard Pepler announced that the company should soon launch its own streaming service in the United States. CBS also unveiled CBS All Access, which offers $ 5.99 episodes of new and old shows, in addition to exclusive coverage.

Via TechCrunch


Leave a Comment