|Netflix CEO Reed Hastings|
In terms of its pricing strategy, Hastings says the company has no intention of offering discounts or promotions like some of the cable networks, which soften price hikes for consumers. "We think pricing is clean, and we think that's what works." But the consumer doesn't seem to think it is working. Following the 60% price hike of its popular one DVD-by-mail and unlimited streaming service in September, Netflix lost 800,000 U.S. subscribers in the third quarter. When asked why people should invest in Netflix, Hastings responded: "If you fundamentally believe Internet video will change the world in 20 years, we are the leading player. ... As long as we don't shoot ourselves in the foot again, we should be good." Yes, Hastings' remarks were meant in jest, but at this time Netflix should be restoring confidence, to investors not cracking jokes. But Hastings must not care too much about how Netflix's stock is performing as he continues to sell off his stake in the company. If Hastings is taking all of this lightheartedly, why should investors get serious on the stock? -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.