Netflix’s first original series, LilyHammer, has just made its debut online. The new show is the first original project from Netflix and is now available to stream online.

Lilyhammer, which stars Sopranos star Steven Van Zandt, is the first show that is available exclusively on Netflix. The Huffington Post reports that the video giant is hoping to become the next HBO with a series of original hits.

Netflix released the entire first season of Lilyhammer so marathon TV watchers can watch all 8 episodes as quickly as possible.

Netflix spokesman Steve Swasey said:

“[Original programming at Netflix] is something between a test or an experiment and a full-fledged initiative. We’re not putting all the wood behind the arrow and we’re not just dabbling in it either…It’s something we’re working on, but the major portion of our budget is still going to be our TV shows and movies.”

Netflix describes the new series as a “fish-out-of-water” story about a New York mobster who has to make a new life in Lillehammer, Norway. Netflix writes:

“Frank has visions of a paradise of ‘clean air, fresh white snow and gorgeous broads’ far away from the temptations of the Big Apple and from mob hit men. Reality, of course, turns out to be spectacularly different.”

Here’s the trailer for Lilyhammer.

Netflix is expected to keep pushing with original content since many of its licencing contracts will expire in the next two years. Netflix already has a new series starring Kevin Spacey, House of Cards, in development. The fourth season of Arrested Development will also be broadcast exclusively on Netflix.

Are you going to watch Lilyhammer?

LilyHammer, Netflix’s First Original Series, Debuts Online [Video] is a post from: The Inquisitr

Yesterday we heard about Craig Davis, VP of Urban Promotions for EMI, who came out and stated how he believes that the whole SOPA thing is the wrong way for entertainment business to try and protect their businesses. Granted he qualified his statement by saying that he was speaking for himself and not as an official representative of EMI and their position on the matter.

However refreshing it might have been to hear an industry insider come out on the side of the consumer in matter like this the fact is we have and entertainment industry that will do anything it can to protect itself from having to actually try and come to grips with a changing world; you know like Warner Bros.

Yes folks Warner Bros. is at it again and once more Netflix is the target for its anti-consumer behavior as we discover that not only are they making Netflix customers wait 56 between the release of a Warner Bros. movie on DVD and being able to rent it from Netflix but now that want to make you wait before you can even add it to your queue.

Warner Brothers is now imposing additional stipulations for its DVD movie new releases. Starting Feb. 1, the company has decided to restrict Netflix users from adding any new DVD releases to their queue until 28 days after the DVD goes on sale in retail stores, VentureBeat has learned.

While Netflix is unable to offer new DVD movies for rent during the 56-day delay window, the company currently allows subscribers to add the titles to their rental queue. This is particularly useful for Netflix subscribers because the new DVDs automatically ship out once the 56-day delay period ends.

via VentureBeat

The real problem here is that it won’t be Warner Bros. getting the heat when people suddenly find that they can’t add DVD to their queue but rather it will be Netflix that everyone starts yelling at. Of course this is all happening because Warner Bros. is under the mistaken belief that by screwing with their customers that this is going to magically increase the sale of DVD, which are hugely profitable for the entertainment companies.

Nice move Warner Bros, ya bunch of jerks.

Warner Bros. continues to show mind-numbing stupidity and anti-consumerism is a post from: The Inquisitr

Back when Netflix decided it was a good idea to split up their instant streaming and DVD-by-mail services, the company was talking plans to introduce a video game rental service that was to be similar to the DVD-by-mail service.

The new “Qwikster” service fell through when there was a mass exodus away from the company, but Netflix didn’t say whether or not it still planned to offer video game rentals at some point in the future. Now, it looks like the company has scrapped the plans entirely.

In an earnings call earlier today, Netflix CEO Reed Hastings confirmed that the company has “no plans” to kick off a Netflix video game rentals service, Engadget reports. The company didn’t say why they had a change of heart, only that it was scrapped alongside Qwikster.

Netflix did say, however, that they were “investigating” the possibility of streaming 3D movies through Netflix’s instant watch service. The company already offers 3D Blu-Rays, but 3D streaming would be a first for the company. There are no details on when that might be made available.

Are you disappointed that Netflix won’t be offering video game rentals, or are you content with other services?

Netflix drops plans to offer video game rentals is a post from: The Inquisitr

Netflix has had it’s share of rough times in the last year. The company was going to separate both their online streaming service and physical DVD service. Dubbed Qwikster, users would pay a flat fee to watch all the TV shows and movies they wanted.

If you still wanted to get DVDs sent to your home, that would be a separate fee. Needless to say, the whole thing backfired and caused them to lose lots of customers and stock to plunge. Shortly after all the complaints and bad press, they announced everything would be kept the way it was.

Being that they had a bit of a rough patch, many were unsure if they’d be able to rebound so quickly. As it turns out, they did quite well in the fourth quarter and beat estimates. 220,000 new subscribers were added, earnings of $0.73 per share, and revenue of $876 Millon.

Wall Street’s estimate was earnings of $0.54 per share and revenue of $857 Million.

Via Mashable:

“The figures, which come in the first full quarter in which Netflix’s price increases took effect. The price hikes did take a toll on DVD subscriptions, which fell in the quarter to 11.2 million, a drop of 2.7 million. However, in a letter to shareholders, Netflix noted that “both hybrid cancellation and migration to streaming-only plans ebbed through the quarter.”

Currently, there are 24.4 Million total subscribers. 21.6 Million get their streaming service and 10.4 Million are subscribed to streaming and DVDs sent to their door.

Do you use Netflix and if so, did the recent debacle have you thinking about cancelling your subscription?

Netflix Performs Better Than Expected In Fourth Quarter is a post from: The Inquisitr

I am sure that there were some people out there who thought things couldn’t get worse for the embattled movie rental company, but worse they got.  Netflix’s investors have filed a class action lawsuit against the company for concealing information about the possibility the stock could tank and trends within the company pointing to a lower stock price.

To put their claim in perspective.  The day Netflix announced it was splitting the company into two different entities, one for streaming content one for DVD rentals, the stock opened at $291.27 per share.  This is the date the class action is claiming that the company concealed its data until October 25, 2011 when the stock closed at $77.37 per share.  The stock currently hovers around $100 per share.

The lawsuit is filed against the company and three of its officers, CEO Reed Hastings, Chief Content Officer Ted Sarandos, and Chief Marketing Officer Leslie Kilgore.

The lawsuit alleges,

“During the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and its contracts with content providers. Specifically, defendants concealed negative trends in Netflix’s business. As a result of defendants’ false statements, Netflix’s stock traded at artificially inflated prices during the Class Period, reaching a high of almost $300 per share on July 13, 2011. While Netflix stock was inflated (partially by Netflix buying back its own stock), Comapny insiders were selling 388,661 shares of their own Netflix stock for proceeds of $90.2 million.”

This is the first time that anyone publicly has brought up CEO Reed Hastings’ selling of the company stock during this time.  His stock used to have a value of $1.5 million dollars but used to hold the value of $3 million dollars.  His salary is only $500,000 per year.

Do you think the investors have the right to sue Netflix?

Netflix Facing Class Action Lawsuit Over Tanked Stock is a post from: The Inquisitr

Monthly subscriptions will cost £5.99 and €6.99 (both around $9) in the UK and Ireland respectively. Its main rival in Europe, Lovefilm, charges £4.99 and already has a readymade base of around 2 million subscribers on the continent.

Netflix has plenty of subscribers away from Europe – more than 20 million in the U.S. and a further 1.5 million outside the States – but it is a complete newcomer in Europe.

The company suffered a painful loss of almost a million customers last year when it introduced eye-watering price rises. The move saw Netflix quickly backpedal, though customers remained largely unimpressed. From mid-July to the end of 2011, Netflix’s value dropped by 75%

When combined with the earlier exodus of customers, the cost of Netflix’s expansion is anticipated to result in a loss when the firm reports its fourth-quarter earnings on January 25.

However, it would seem a recovery is underway. 2012 is still young, but Netflix shares have seen a resurgence, largely thanks to speculation that the company could receive a fat buyout offer.

Shares might not be anywhere near their July 2011 high of $305, but they have gained by $11.89, or nearly 14 percent, this year. They now stand at $98.18.

Netflix Launches Video Service in UK and Ireland is a post from: The Inquisitr

Netflix has finally got something to gloat about.  Its streaming video service has shown that more than 20 million subscribers around the globe watched over 2 billion hours of old TV shows and movies on High Speed Internet devices during the final quarter of the year.

From ridicule to riches, Netflix saw a single day increase of over 11% on its battered stock.  This is the highest price the stock has seen in over 7 weeks.  Now, don’t get me wrong, it isn’t the $306 per share price the company could boast in July, but it is definately improving and giving investors some confidence in the company.

Rumor around the financial world is this new data suggests that Netflix is ripe for a takeover.  Yahoo, who just installed a new CEO yesterday is said to have some interest.  Amazon also has been trying to get some skin in the streaming video game for a while.

As expected, Netflix says it is not interested in a takeover and wishes to maintain its independence.

Netflix met with a series of PR disasters this year when it raised prices on it services by over 60%.  It also tried to separate its streaming video service and mail DVD service into two separate entities.  User backlash was so strong that the company cancelled all those plans and issued an apology.

There was also concerns that because streaming video eats up so much bandwidth, it would force users over their caps, and give people reasons to stop streaming.  These Q4 numbers seem to completely buck that theory.

Netflix has a goal of phasing out its DVD rental service as it becomes less and less likely that people will use the service.  The company has not released its DVD subscriber numbers yet, but it is widely expected that the numbers will be way down, making this year the first year Netflix has lost money in more than a decade.

Would you rathe ruse streaming video or old fashioned DVD’s from Netflix?

Netflix Shares Jump 11% on Growing Internet Usage Statistics is a post from: The Inquisitr

Despite the not so great news over the last few months with Netflix, that doesn’t mean the service is slowing down by any means. In just a 3 month period, users logged over 2 Billion (Yes, that’s with a B) hours from the ever ranging line of TV shows and movies.

With 20 Million streaming users Worldwide, this comes out to about 100 hours per person which, while isn’t exact, probably isn’t too much of a stretch for the more dedicated customers. Despite the news towards the end of last year that it’s unlikely Netflix will turn a profit in 2012, it seems they learned their lesson with the Qwikster debacle.

From their press release:

“We were thrilled to deliver more than two billion hours of TV shows and movies across 45 countries in the fourth quarter,” said Netflix Co-Founder and CEO Reed Hastings. “Netflix delights members by giving them choice, convenience and control over the entertainment they love for an incredibly low price.”

Going forward into 2012, the company needs to keep it’s users best interests at heart and keep in touch with customers if any changes are to arise. Keeping the current options where they are at this point in time, seems to be the best way to go to keep users both happy and watching. And people definitely are watching as witnessed by this announcement.

While the price is great, only $7.99/month, there’s still seems to be the issue with ISP’s and bandwidth caps. For a family streaming Netflix, it can catch up, but that again isn’t stopping people from streaming the shows and movies they want, when they want.

Netflix Customers Stream Over 2 Billion Hours In Q4 is a post from: The Inquisitr

To say that Netflix hasn’t had a particularly good year would be a pretty big understatement. After hiking up the prices of their instant streaming service and unsuccessfully attempting to spin-off their DVD-by-mail to a separate service, Netflix’s subscriber base has seen a steady decline throughout the year.

Unsurprisingly, an annual report from ForeSee Results, a company that specializes in measuring consumer satisfaction, shows that customer satisfaction for the service has tanked pretty significantly. The survey’s 100-point scale puts Netflix customer satisfaction at 79, which is down seven points from its previous position in the survey.

“Netflix totally misread its customer base and is paying the price, damaging its brand among both consumers and investors,” said Larry Freed, president and CEO of ForeSee, in a statement. “Raising prices by 60% and splitting the baby into separate DVD and streaming services totally undermines Netflix’s cost and convenience advantages. Customer satisfaction is predictive, which means that Netflix’s financial woes may be just beginning.”

While Netflix’s ratings in ForeSee Results’ survey took a big hit, Amazon secured the top spot on the list with a score of 88, up two points from last year and one point from the year before that.

“E-retailers have consistently upped their game since we first started measuring holiday satisfaction in 2005, but Amazon is still the 800-pound gorilla of retail, and it just keeps getting better,” Freed said. “It’s tough for a smaller retailer to compete with this level of dedication to providing an excellent customer experience.”

On the bright side for Netflix, 2012 can only be an improvement for the company – unless they somehow manage to cook up another scheme to cause yet another mass subscriber exodus.

Source: ForeSee

Netflix customer satisfaction tanked in 2011 is a post from: The Inquisitr

Ah, 2011… it wasn’t a fantastic year for many, and the seemingly-until-now untouchable Netflix was one of the casualties.

After some highs in the summer, Netflix stock began taking hits for a few factors, and the company seemed to hit a bit of an uncontrollable tailspin. The problems began with an unpopular rate hike in September, that doubled the cost of Netflix service for many subscribers. A large number of former Netflix fans threatened to quit the service in protest, and Netflix stock began to reflect the overwhelmingly critical consumer sentiment.

Then came Qwikster- the company’s failed attempt to spin off the DVD portion of the business from its popular streaming service, a move that garnered the company a double whammy of consumer outcry and forced CEO Reed Hastings to issue a frantic late-night email canning the whole concept after many customers threatened again to leave Netflix altogether.

The company has endured and still maintains a healthy subscriber base, but in addition to its PR woes, Netflix also engaged in some serious empire expansion, building out markets in Latin America and the UK. Owing to revenue hits and new ventures, the company has had what is undeniably a rough go of it in 2011, and CEO Reed Hastings would probably be the first to admit it.

It was revealed today that Hastings’ Netflix stock options would be halved in 2011, down from $3 million to $1.5 million in 2012. Pressed for comment by Bloomberg, a Netflix spokesman said the company doesn’t “comment on board decisions or executive compensation.”

Netflix Stock Options Halved For CEO Hastings After Rough Year is a post from: The Inquisitr

Netflix CEO Reed Hastings is largely responsible for the company’s loss of more than 800,000 video subscribers and now he’s being slapped on the wrist for his actions with a $1.5 million reduction in his 2012 stock options, exactly 50% of his $3 million allowance for 2011.

Hastings will continue to receive his $500,000 salary which is being paid at a time when the company’s stock has been pulverized after the company decided to raise subscription prices on DVD and video streaming services by 60% while also losing their contract with Starz after the company demanded exceedingly higher costs to do business with rumors of a tiered pricing system for their service.

During 2012 Hasting’s also attempted to spin off Netflix DVD rentals into a business called Qwikster, a decision that was critically panned and quickly abandoned over fear of consumer confusion and abandonment.

Because of his decisions Netflix will record a net loss in 2012, the first time the company has ever recorded a loss in over a decade of doing business.  In 2011 Netflix stock plunged by 75% since mid-July, wiping out $12 billion in shareholder wealth.

Even Hastings was surprised by the company’s turn in fortune, announcing at a shareholder meeting last month that he had suspected the company’s stock would hit $1,000 one day. Netflix stock is now trading at $73.84 (up 4% on Thursday), down from it’s July high of $305.

To his credit Hastings has apologized, taken full responsibility and offered no excuses regarding bad business decisions made by the company throughout 2011.

Not all employees are receiving cuts however, chief content officer Ted Sarandos will see his salary increase from $903,362 to $1 million in 2012 while his stock options will increase from $1.4 million to $1.8 million.

In the meantime while some analysts have suggested that Netflix needs to rescind at least part of their price increases Hastings has so far denied that call to action, instead focusing on new contracts with the likes of Pixar animation and the Discovery Network.

What would Netflix need to do in order to win your business back if you recently left their network over all the fumbles they provided in 2011?

Netflix CEO Reed Hastings Slapped On Wrist With $1.5 Million Stock Option Reduction is a post from: The Inquisitr

Last week there were rumblings that Verizon was gearing up to launch a new web-based movie and TV streaming service in direct competition with Netflix. According to the last rumor, however, it looks like Verizon has a new plan to get a piece of Netflix’s pie: buying them out.

The news comes from DealReporter, which says that Verizon is “considering” Netflix as one of its options to break into the lucrative video content streaming market. Another option that Verizon had recently been considering was Hulu, but that deal is now out of the picture as the company pulled itself off the market.

DealReporter isn’t the only source talking about a possible bid from Verizon to acquire Netflix. Porter Bibb, managing partner at Mediatech Capital, said in a TV interview (via Bloomberg) that he’s been “hearing rumblings from inside Verizon that they are very serious about either Netflix or something similar,”

Considering that Netflix’s market value is now around $4 billion, down from $16 billion from July of this year, the idea of the company selling themselves off doesn’t exactly sound out there. The company has been struggling to recover from what was essentially a mass exodus from the video content service after the company raised prices and (unsuccessfully) attempted to spin off their DVD-by-mail service. Putting themselves on the market would be at least one way to sort things out.

What such an acquisition would mean for consumers is unclear, but investors seem to be interested in the idea; Netflix shares rose 5.6% to $74.85 in afternoon trading on Monday.

[Image credit: REUTERS/Rick Wilking]

Rumor: Verizon Looking to Purchase Netflix is a post from: The Inquisitr

A new Verizon online video service may soon launch in an attempt to compete with Netflix and other video streaming services.

Under the firms new offering the service will be made available to more than 85 million Verizon FIOS broadband and cable market subscribers and if Reuters is correct the service could launch by early 2012.

It’s still unclear if Verizon will attempt to court traditional TV networks and other providers on the same scale as Netflix, one possibility is that the company will instead offer movie packages from the likes of Starz Play and children’s shows from Disney, Nickelodeon or another children’s service provider.

News of a Verizon streaming video services isn’t new, the company has been discussing the possibility to launch such a platform for the last two years but they have been worried about damaging their relationship with cable providers who might find the service to be a threat to their primary business models.

If Verizon moves forward with their service it will likely come with a price similar to that of Netflix and word of mouth says they will immediately form a deal with Time-Warner and Comcast which could potentially change the landscape of the entire industry.

Would you jump ship from Netflix to Verizon with Cablle or FIOS guaranteed connections?

Verizon To Launch Netflix Competitor In Early 2012 is a post from: The Inquisitr

News earlier this week that struggling movie streaming service Netflix had raised $400 million battered already damaged Netflix with more bad press, and stock reached a 20-month low in the market.

Investors- already skittish after a months-long bad press bonanza stemming mainly from a massively unpopular price hike as well as an ill-received and soon reversed name change- have taken a dim view of Netflix’s latest move. The announcement is seen by some analysts and investors as “desperate,” and indicates the company may anticipate struggling with “cash-flow problems for a while,” Bloomberg notes. Analysts also “questioned the wisdom of selling 2.86 million shares of stock at $70 apiece to raise $200 million after spending nearly the same amount in the first nine months of the year to buy back nearly 900,000 shares at an average price of $218,” the Seattle-Post Intelligencer reports.

Netflix again tried to reassure investors the company is doing all it can to reverse subscriber exodus as well as bolster its streaming content to retain current customers. As to the $400 million cash influx, Netflix spokesman Steve Swesey said:

“Netflix is raising money now to strengthen the balance sheet… We have no cash or general liquidity needs, and therefore have no immediate plans to use this capital.”

In an earlier stock filing, the company stated:

“If we are unable to repair the damage to our brand and reverse negative subscriber growth, our business, results of operations, including cash flows and financial condition will continue to be adversely affected.”

Bloomberg also points out that Netflix anticipated being spread a bit thin for the next few quarters as it shores up content selection and continues its expansion into Latin America and early 2012 UK launch.

Netflix Stock Hits 20-Month Low After Company Raises $400M is a post from: The Inquisitr

Netflix on Monday announced that they have raised $400 million by issuing more debt and stock in an attempt to expand their operations while earning back the 800,000 customers they lost after raising subscription costs by 60%.

Stock prices fell sharply on Monday in extended trading before rebounding to lose just 87 cents on the day. Netflix shares were down 1% late Monday with a closing price of $73.60.  Netflix shares were trading at a high of $305 in mid-July, just before Netflix angered their customer base and became the laughing stock of the DVD rental business when they attempted to launch and then quickly ditched their Qwikster program.

Netflix ended September with 23.8 million U.S. subscribers while attempting to expand their business in Latin America and Great Britain.

Despite the company’s recent fund raising they are said to have $366 million in cash-on-hand and short-term investments however the company is also experiencing higher subscription rates from TV and Movie providers. In October the Starz Network announced that they would leave Netflix in February 2012 after the company refused to pay $300 million per year in licensing fees, up from their current $30 million deal.

Since the Starz deal fell apart Netflix has been attempting to acquire as many new partnerships as possible, racking up $3.5 billion in rights to stream Internet video with higher costs expected in 2012 and beyond.

Under their new financing round Netflix issued $200 million in convertible notes to Technology Crossover Ventures while their debt offering required the sale of another $200 million in shares to be sold by November 28, volume they already reached by selling 2.86 million common shares at $70 each, a 6 percent discount from their $74.47 closing price on Monday.

Under their fundraising effort their convertible notes will mature in December 2018 and will not require an interest payment but will allow Technology Crossover Ventures to convert the notes to stock valued at $85.80.

Do you think Netflix can acquire the relationships necessary to attract new users and continue to expand?

Netflix Issues More Debt And Sells Stock To Raise $400 Million is a post from: The Inquisitr

The new season of “Arrested Development” will stream exclusively on Netflix. Is this a groundbreaking new deal that shows the power of online TV? Or does it prove that Twentieth Century Fox still doesn’t have any faith in one of the greatest shows of all-time?

Arrested Development went off the air after three seasons in 2006. The critically acclaimed show, which TIME Magazine named one of the greatest shows of all time, will be brought to life in 2013.

Twentieth Century Fox Television and Imagine Television will produce the show. Netflix did not say how many shows they were ordering, but creator Mitch Hurwitz said in October that he plans to bring “Arrested Development” back for a short season before filming a movie.

The return of “AD” is great news for the show’s fans, but it is also a great PR move by Netflix. Netflix has lost a lot of fans in recent months after a series of poor company decisions. Getting the exclusive rights to “Arrested Development” could entice a lot of people back to Netflix.

Netflix’s Chief Content Officer, Ted Sarandos, told Collider:

“Arrested Development is one of the finest American comedies in TV history and its return through Netflix is a perfect example of how we are working closely with studios and networks to provide consumers with entertainment they love. It’s also a perfect example of how broad and successful our relationship has become with Fox as we work together with their film, television, international and digital divisions on several exciting initiatives.”

Peter Levinsohn, Fox Filmed Entertainment’s President of New Media & Digital Distribution, told Reuters:

“Netflix’s bold entrance into original programing presents an exciting new opportunity for our two companies. Bringing a classic show back to production on new episodes exclusively for Netflix customers is a game changer, and illustrates the incredible potential the new digital landscape affords great content providers like Twentieth Century Fox Television and Imagine.”

I know you’re excited to have “Arrested Development” back. But what do you think about the new episodes streaming on Netflix?

New ‘Arrested Development’ Season to Stream on Netflix is a post from: The Inquisitr

According to a report by Reuters, Netflix has extended its existing two-year licensing agreement with Walt Disney Co.’s Disney-ABC Television Group, which will bring shows like “Alias,” “Switched at Birth” and “Kick Buttowski” to its “Watch Instantly” service in the U.S.

In addition to retaining the ability to watch seasons of “Grey’s Anatomy,” “Desperate Housewives,” “Lost,” “Ugly Betty” and other series from ABC, Netflix subscribers will now also have access to Disney Channel content, including shows like “Hannah Montana” and “Phineas and Ferb,” and past and current episodes of ABC Family series like “The Secret Life of the American Teenager” and “Make It or Break It.”

Amazon’s deal with Disney is brand new and adds even more content to their Amazon Prime subscription service, which costs $79 a year and also includes free 2-day shipping from their site.

The Wall Street Journal reports that the deal will give Amazon Prime subscribers access to everything Netflix has, but will also win library content from Marvel like “Spider-Man” and “X-Men Evolution.”

“We’re working hard to add even more selection for Kindle Fire customers and Prime members leading up to the holidays, and expect to have nearly 13,000 titles available in Prime instant video by early next year,” said Brad Beale, Seattle-based Amazon’s director of video

Besides Disney, Amazon has also penned agreements with CBS, Fox, Warner Bros., Sony and NBCUniversal in its ongoing efforts to help boost sales of its new Kindle Fire tablet.

Are you currently a Netflix or Amazon Prime subscriber? If not, will the recently signed deals signed with Disney-ABC persuade you to sign up?

via Reuters

Netflix, Amazon to stream Disney-ABC content is a post from: The Inquisitr

Netflix stock prices tumbled Tuesday, and when we say tumbled, we mean tumbled. Shares in the on-demand media giant plunged 35 percent after the departure of 800,000 subscribers, an exodus that the company admits it is to blame for.

The loss of so many customers in a single quarter came about after some hefty price increases, and also the company’s questionable plans to divide mail-in movie rentals and online streaming into separate services.

Netflix’s choice to hike prices by as much as 60 percent in July and split up its streaming and DVD rental services triggered a tsunami of complaints from riled customers. And there may be more badness to come: Netflix CEO Reed Hastings expects more customers to jump ship over the coming months.

So what was the exact damage? Well, Netflix shares fell a whopping $41.47 to close on Tuesday at $77.37. Just four months ago, the stock was worth more than $300. It has been, by any standard, a startling fall.

Analysts immediately reacted, with Citi Investment Research downgrading Netflix stock from ‘Buy’ to ‘Neutral.’ CIR analyst Mark Mahaney cut his target price on the stock from $220 to $95. He also added that the price increase and plans to divide Netflix’s DVD business were “major execution errors,” which is possibly politer language than Netflix shareholders are using this morning.

The strange part of this story is that Netflix Inc. did report better-than-expected financial results for the third quarter of 2011, but the good news was overcome by the mass departure of customers.

Netflix has said it does not comment on stock movement or analyst reports. I don’t blame them in this case.

Netflix Stock Price Tumbles Following Defections is a post from: The Inquisitr

Netflix CEO Reed Hastings has apologized, explained, and apologized again for his companies plan to divide mail-in movie rentals and online streaming into two separate services, but that hasn’t stopped many people from jumping ship. Netflix has lost more than 800,000 subscribers since the Qwikster debacle.

Hastings wrote in a letter to shareholders:

“The last few months…have been difficult for shareholders, employees, and most unfortunately, many members of Netflix. We’ve hurt our hard-earned reputation, and stalled our domestic growth.”

Netflix has abandoned its Qwikster plan and has promised customers that “we are done with pricing changes,” but Hastings thinks that the great Netflix exodus isn’t over yet.

CNN reports that Netflix has 23.8 million subscribers in the US. That number is down from 24.6 million subscribers which the company had three months earlier. The majority of Netflix customers use the online streaming service (21.5 million subscribers). Netflix currently has about 14 million people signed up to receive DVDs by mail.

The company is expecting those numbers to dwindle ever further by the end of the year. Netflix estimates that it will have have 20 million to 21.5 million streaming customers and about 11.3 million DVD subscribers at the end of the year.

Netflix said on Monday:

“We compounded the problem with our lack of explanation about the rising cost of the expansion of streaming content … [so] many perceived us as greedy. Our primary issue is many of our long-term members felt shocked by the pricing changes, and more of them have expressed that by canceling Netflix than we expected.”

Do you still have a Netflix account? Where do you rent movies?

Netflix Loses 800,000 Subscribers is a post from: The Inquisitr

Netflix and the CW network announced on Wednesday a continuation of their current partnership through the 2014-15 season. Under the deal Netflix will receive non-exclusive rights to stream previous seasons of scripted series.

Under the deal Netflix will receive more than 700 hours of previous-season episodes including the rights to new series; “Ringer,” “Hart of Dixie” and “The Secret Circle” alongside network regulars “The Vampire Diaries,” “Gossip Girl,” “90210,” “Supernatural,” “Nikita” and “One Tree Hill.”

While Netflix will receive the right to broadcast the newest seasons of those shows the moment they end their season broadcast run, they will also be allowed to air all previous season episodes starting on October 15.

Speaking of the partnership Leslie Moonves, President & Chief Executive Officer, CBS Corporation revealed:

“This is a forward-thinking agreement for a network whose programming occupies a unique space in the content marketplace … It is a model that opens a new door for The CW programming to expand its audience reach through the terrific Netflix service, and creates a brand-new window for CBS and Warner Bros. to be paid for the content we supply the network.  It also further illustrates how new distribution systems are providing premium content suppliers with additive revenue streams while still preserving traditional monetization windows.”

Ted Sarandos, Chief Content Officer at Netflix added in his press statement:

“We have long admired the CW’s ability to connect so passionately and directly with a very important and difficult to reach demographic … This is programming for the on-demand generation and we hope this agreement deepens the relationships viewers already have with these powerful entertainment brands.”

Netflix in recent weeks has worked to secure new streaming partnerships with major brands. The company recently secured a Pixar animation deal that will provide the company with exclusive broadcast rights to the studios movies at a cost of $30 million per film. Netflix is hoping to show customers a better product before their partnership with Starz runs out in February, costing the company access to Sony Pictures and Disney films.

Netflix Signs 4-Year Non-Exclusive Deal With CW is a post from: The Inquisitr