Netflix reported the loss of over 800,000 subscribers in the last quarter, the first time in years their customer base shrank instead of growing. The losses were the result of several poorly-handled PR blunders, including an unexpected price hike, the Qwikster debacle, and a lack of communication with customers. Stocks took a 36% dive on the announcement of the subscriber loss, down to 23.8 million from 24.6 million just three months earlier.
Many customers were unhappy with Neflix’s decision to split the DVD-by-mail and streaming options, with large price hikes for both. Netflix drew more criticism when they decided to create a different company for the DVD-by-mail option, called Qwikster, which would require customers to have an entirely different subscription. Netflix then decided to scrap the Qwikster plan, and have returned to the two separate options under the Netflix name, with the price hikes still in place.
