Video & Audio|October 25, 2011| Author: Kim LaCapria|

Netflix Losses Even Steeper Than Expected

netflix losses october 2011

To say it’s been a rough couple of months for video streaming and DVD rental company Netflix would be a bit of an understatement, as the company has suffered a double whammy of subscriber outrage due to a relatively huge jack up of prices and subscriber outrage due to an aborted attempt to spin off their DVD face into a new company called Qwikster.

Per Bloomberg, Netflix has pushed ahead with plans to expand to the UK and Ireland, but after that, the company will concentrate on mitigating the effects of the back-to-back decisions that have negatively impacted both the company’s bottom line as well as public perception of the once bulletproof company. Netflix CEO Reed Hastings confirmed the plan to tighten the reins in coming months and regain lost ground. Hastings said:

“Pausing is a good thing from an investor standpoint. We are going to pause and restore our global profitability.”

While analysts have predicted a more intensive marketing push by Netflix to reverse the trend, Hastings maintains the company will shore up its offerings and enhance its streaming interface to win back customer loyalty:

“Our streaming marketing has been very effective in the past two years. We are going to work on improving the user interface, expanding to more platforms and delivering more content. There’s no grand gestures, there’s just a lot of steady and intense efforts.”

In September, Netflix estimated a subscriber loss figure of 600,000. The number wound up being closer to 800,000.