This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Netflix Split-Up: Final Straw for Subscribers?

This comes as subscribers have already been flocking to the exits after Netflix raised its most popular DVD-by-mail and unlimited streaming package by 60%. The new price, $7.99 for each per month, went into effect at the beginning of the month. This brings the combo plan to $15.98 from $9.99 per month.

As expected, the backlash from subscribers was intense, but it seems even more so than management anticipated. On top of this, Netflix also reached a stalemate with Liberty Starz Group (LSTZA) to renew its streaming content deal, and will pull its content when the current partnership expires in February.

These factors led to Netflix being forced to slash its third-quarter domestic subscriber guidance last week. The company now expects 24 million U.S. subscribers in the July- September quarter, down from its prior guidance of 25 million. The stock plunged 25% following the news, closing on Friday at $155.19, its lowest level since October 2010.

And after initially getting a lift on the news, rising as high as $162.99 in Monday's session, Netflix shares were recently trading at $152.75, down another 1.6%.

Subscribers are being hit with a triple whammy -- higher prices, less content and now less convenience.

Is the Netflix split-up the last straw? Will you continue to remain loyal or stream for the exits? Take our poll and see what the other TheStreet users are saying.

With Netflix splitting into two companies --one for DVDs and the other for streaming -- will you cancel your subscription?

Yes -- I will cancel my Netflix subscription completely.
Yes -- I will cancel one of the two services.
No -- The split-up makes no difference.

>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NFLX $89.01 -1.40%
AAPL $93.24 -1.70%
FB $116.84 0.09%
GOOG $692.60 0.23%
TSLA $245.12 -1.00%


Chart of I:DJI
DOW 17,750.91 -79.85 -0.45%
S&P 500 2,066.13 -9.68 -0.47%
NASDAQ 4,777.1220 -28.1690 -0.59%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs