Amidst public uproar over new, higher priced subscription plans and the impending loss of key TV and film provider Starz’ video library, Netflix expects to attract one million fewer subscribers than previously anticipated.
According to AllThingsD, the mail rental and streaming movie service recently slashed Q3 2011 projections by four percent from 25 million to 24 million subscribers, projecting the bulk of loss, roughly 800,000 viewers, from its DVD rentals service alone. Continuing to defend its position, which critics and incensed fans alike say may be a sign of the company’s growing aloofness, Netflix says recent measures are designed to optimize service and grow its digital catalogue.
While acknowledging customer complaints, the entertainment provider, which now enjoys a presence on dozens of devices via its online video-on-demand apps, has also reaffirmed plans to forge ahead with its current business model. Earlier this summer, Netflix publicly stated that revenues were likely to take a dip as shoppers came to grips with its new pricing, but that overall growth should be back on track by year end. But debate still rages online, the firm’s stock price continues to plummet, and its future remains uncertain, as more companies from Amazon.com to Wal-Mart continue to enter the increasingly competitive online streaming video business.