To an outside observer, Netflix looked like it had everything going for it earlier this year. Customers could choose to receive DVDs via the mail or streaming onto their computers, televisions and portable devices. The price was right and the company’s subscriber base was growing. Then the management team at Netflix decided to make some changes, namely an increase in prices and a proposed separation of its two business models. This angered customers to the tune of 800,000 subscription losses last quarter alone. Unfortunately, the company expects to continue to lose subscribers during the upcoming quarter as well.
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