Hi all,

FYI. See link.

The fact that their earnings dropped is no surprise, after all that's why they raise the rates 60%! If they would have raised it in 3 raises of 20% people would have been unhappy but paid it. Since the increase is so large, all of my friends who use Netflix have dropped it or told Netflix they are canceling just before the increase goes thru.

I would think when they see the next 1/4's subscriber numbers wall street will first be upset!

Take care,

Jay

Netflix braces for growth slowdown, stock plunges

By MICHAEL LIEDTKE - AP Technology Writer | AP 18 hrs ago

Netflix braces for growth slowdown, stock plunges - Yahoo! News

SAN FRANCISCO (AP) Netflix Inc. is bracing for a backlash to its recently announced price hikes that could result in its slowest subscriber growth in more than three years.

The company's sobering forecast Monday overshadowed its second-quarter earnings that easily topped Wall Street's expectations.

Netflix's shares plummeted by more than 10 percent, largely because the company expects its results for the current quarter ending in September to miss the targets set by industry analysts.

The shortfall stems from an anticipated slowdown in Netflix's subscriber growth amid changes to its online video and DVD rental service that will raise prices by as much as 60 percent. It's most radical change in the company's pricing since it began renting DVDs through the mail 12 years ago.