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Netflix Reacts to Outrage

Check out Bas Rutten's Liver Shot on MMA Surge: Netflix has responded to all the outrage concerning its price hikes. CEO Reed Hastings has addressed his customers, some of which face price increases as high as 60%. Netflix has enjoyed a strong second quarter, but it wasn't good enough to satisfy investors on Monday July 25th as it saw its stocks plunge. Customers reacted angrily when Netflix announced earlier this month that it's hiking prices on plans that include DVDs and streaming, in a move that highlights the company's shift from physical discs to online video. "It is expected and unfortunate that our DVD subscribers who also use streaming don't like our price change, which can be as much as a 60% increase," Netflix said in its earnings release. The company acknowledged that "some subscribers will cancel Netflix or downgrade their Netflix plans, [but] we expect most to stay with us... the social media noise level was actually less than we expected, given a 60% price increase for some subscribers," said Reed Hastings, the CEO. "We knew what we were getting into."
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