Netflix’s revenue missed expectations last quarter, possibly because many of us haven’t laid hands upon a DVD or Blu-ray in quite some time. The number of customers streaming movies has jumped drastically from a year ago.
Netflix reported that 61% of its users are now streaming, compared with 51% the quarter before, and only 37% a year ago. Netflix saw a shift toward the cheaper $8.99 a month plans that allow for only one disc out at a time, but unlimited online viewing.
As a result, the average subscriber is now only paying $12.29 a month, instead of last year’s $13.29. This news, in spite of strong earnings and subscriber growth, sent Netflix’s stock down 9%. With more and more devices capable of streaming Netflix’s substantial online library, this news ought to come as a surprise to none, even given the dubious video quality of some of the catalog. I know I personally have no idea where my current Netflix disc is, and don’t really care. Sorry shareholders! [MarketWatch via Business Insider]
