Remember the self-inflicted bruising Netflix received in late 2011 with the Qwikster disaster? Well rest ashore; skeptics aren’t letting CEO Reed Hastings forget either.
Besides the company’s miscue (and a few others since its 2007 video-streaming inception) Netflix accrued a 4.96% quarter-over-quarter increase in earnings (from 3Q 2011- 2Q 2014) since my last posting of Netflix back in 2011. In April of that same year – before the reversal decision to split its online streaming and DVD-rental plans into two companies – Netflix announced that it had 23.6 million subscribers in the United States and over 26 million worldwide and by year’s end, total revenues (domestic and international) for the company reached $3.2 billion. But due to price hikes, customers left and as a result in 2012 Netflix reported an 88% drop in third-quarter profits.
And like the finale of a favored Hollywood movie, many thought this was the end of a beautiful beginning. (more…)