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Backlash Netflix Releases Slow Growth Forecast Amy Sancetta / AP Photo

Netflix Releases Slow Growth Forecast

Despite exceeding expectations in its second-quarter earnings, Netflix Inc. issued on Monday a negative growth forecast due to its planned price hike. Since the company announced two weeks ago the change in subscription rates starting in September, Netflix’s shares have fallen by more than 10 percent. Netflix expects to add between 190,000 to 1.29 million subscribers in the upcoming quarter, which would make it the slowest growth in years. Netflix CEO Reed Hastings insisted they are feeling “great” about the decision to change the subscription prices, despite saying they agreed that customers irked by the new prices will leave the company.

July 26, 2011 12:50 AM