Netflix reports worst member growth in three years
Tech Industry
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Transcript
There's trouble in Netflix paradise.
Netflix reported it's worst member growth in three years.
The streaming service lost some users in the last quarter due in part to price increases in markets like the United States.
Netflix also warned that it will not meet analysts expectations on subscriber growth in the next quarter.
So who did Netflix blame for this lack of growth?
The press.
At first that seems like an odd idea.
Netflix increased prices, so shouldn't that be enough of a reason to get certain members to cancel the service?
Netflix explained that in April, the phrase, Netflix price increase, trended on Google Trends.
The company said it saw members who were not subject to a higher price Cancelling their memberships.
For those of you who are wondering.
Netflix increased their its US pricing on a standard plan from roughly nine dollars, to roughly ten dollars.
That plan allows a member to stream Netflix on two screens at one time at 1080PHD.
Netflix's stock price took a hit dropping 15%.
The service still has over 83 million subscribers worldwide, which is pretty impressive.
Netflix CEO Reed Hastings says that with the increased revenue, Netflix will invest in better content.
Can someone please tell him to stop Stop backing Adam Sandler movies then.
It's enough.
Enough's enough.
Well that's it for this tech news update.
I'm Aya Zaktar and you can stay on top of the biggest stories at CNET.com/update.
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