Summary Box: Netflix's fortunes sink on price hike

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Netflix's decision to raise the prices of it's video subscription service by as much as 60 percent isn't panning out like management anticipated. The company warned investors Thursday the higher rates are triggering more cancellations than it expected.

THE FALLOUT: At the end of September,Netflix( NFLX-news-people) predicts it will have 24 million U.S. subscribers. That would be down from 24.6 million at the end in June. It will be only the second time in Netflix's history that the company's customer count has fallen from one quarter to the next.

MARKET REACTION: Netflix shares plunged by about 19 percent.

 

 

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Posted in Renovations Post Date 06/14/2015


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