1. Backlash

    Netflix to Lose 1 Million Customers

    FILE - In this file photo made July 20, 2010, a Netflix customer holds up a movie in Palo Alto, Calif. Netflix Inc. announced Tuesday, July 12, 2011, it is launching new unlimited DVD-only plans in the U.S. at their lowest price ever- only $7.99 a month for the 1 DVD out at-a-time plan and $11.99 a month for the 2 DVDs out at-a-time plan.(AP Photo/Paul Sakuma, file)

    Paul Sakuma / AP Photo

    It seems the disgruntled Netflix customers weren’t all talk. The company lowered its growth forecast by 1 million U.S. customers after its price hike prompted many to quit the movie-rental service. Netflix’s stock fell nearly 15 percent on the news. The company’s decision to separate its streaming service and DVD-rental service, raising the price for a joint streaming and rental plan as much as 60 percent, outraged many customers. Far fewer customers signed up for the DVD-only subscription package—2.2 million instead of the predicted 3 million. Only 21.8 million customers signed up for streaming, 200,000 fewer than Netflix had anticipated.

    Read it at Reuters