(Updated to include Netflix abandoning Qwikster and new power outages.)
So much so, that CEO Reed Hastings has been forced to make some desperate calls to right the wrongs made over the past several months.
It's becoming increasingly clear that the company's string of announcements have put a sour taste in subscribers' mouths.The movie rental giant slashed its third-quarter domestic subscriber guidance last month, redicting 24 million U.S. subscribers in the July-September quarter, down from its July 25 guidance of 25 million subscribers. But this revised outlook came before the company's most recent blunder -- the announcement of the split-up of its DVD-by-mail and streaming business -- which has left investors wondering just how many more subscribers streamed for the exits. Still, its recent faux pas are out of character for Netflix, which has been a consistent company that has impressed both investors and subscribers alike. "Netflix only screwed up once in the first seven years I covered them (from 2004 until mid-2011) when they cut prices to compete with Blockbuster," said Wedbush analyst Michael Pachter. "They have now screwed up three times in the last couple of months (price increase, letting Starz get away, and capping streams per household). Maybe they'll right the ship, and maybe they will keep screwing up." Keeping this in mind, here's a look at Netflix's recent slip-ups.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV