Tuesday, April 24, 2012

Netflix Reportedly Losing Money

Several days ago Netflix released their 1st quarter financials for 2012, and for the first time in 7 years they have reported a loss. Netflix has recently been dealing with rising licence fees and increased costs from their international expansion.
The good news is the 1st quarter financial setback is actually smaller than originally anticipated by analysts. Another promising sign, the company experienced an increase in subscriptions during the first quarter of 2012. This could be due to Blockbusters official announcement last week that they were shutting down all Blockbuster locations (although there weren`t many remaining).
Analysis are reporting that the smaller than expected loss in Netflix`s 1st quarter of 12 could be a good indication that Netflix is recovering beautifully after increasing rates in the US last summer, and receiving large amounts of backlash from customers. Since September 2011, Netflix has lost nearly 5.2 million subscribers, many unhappy with the increase in rates. Netflix currently has 26.5 million
It’s ok Netflix only made $870 million in the first quarter of 2012

1 comment:

  1. Brilliant analysis! I good to know that Netflix is recovering beautifully after increasing rates in the US last summer, and receiving large amounts of backlash from customers. Since September 2011, Netflix has lost nearly 5.2 million subscribers this is really unexpected fact. I'm looking for next update

    ReplyDelete