10:35 am October 25, 2011, by Christopher Seward
Netflix, once the star in video subscription services, is finding out the hard way that it’s still all about the customer – and investor.
When it raised prices by as much as 60 percent in the U.S. on Sept. 1 and then bungled an attempt to spin off its DVD-by-mail rental service, it probably never dreamed it would see such an exodus of customers, or the nightmare on Wall Street that followed.
Netflix CEO Reed Hastings said the company should have done a better job of explaining the price hike. He said the money was needed to pay movie and television studios for rights to stream more content more quickly.
Netflix thought it would lose 600,000 subscribers, but instead lost 800,000, taking its subscriber list down to 23.8 million.
What does Netflix need to do to repair the damage, keep existing customers and bring others back?
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