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Originally Posted by kane
I just did a little looking around. You are right. They didn't lose 2 million members. They have lost around 1 million since the announcement of their price increase and expect to lose another 600K or so this quarter so it looks like they lost, or are expecting to lose, around 1.6 million.
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Still wrong. They PROJECTED 25 million subscribers by the end of the 3rd quarter now they are only PROJECTING 24 million. That's not an actual loss. Of that 1 million, 800,000 is on the DVD-only side which is money loser anyways.
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The thing is, exactly how has Netflix "done was is necessary" to get more newer movies on on streaming? The way I see it they are actually staring a decline in streaming movies in the face. The deal with Starz gave them a decent number of newer movies on streaming, but the problem was many them were only for a limited time and now that entire deal is in jeopardy of going away. If they do lose that deal they will need to spend that money somewhere to get more newer content or they will see less available to customers not more.
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Netflix current deal with Starz is for $30 mil a year and expires in February. Netflix offered $250 mil per year. Starz wanted $300 mil and wanted it available to only those customers that had BOTH the streaming and DVD packages. Now was that a deal Netflix should have made? Is Netflix the "bad guy" in this situation? Netflix now has $250 mil a year to give someone else for content.