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Has anyone actually done the math here:

25 million customers at $10/month was the old calculus;

24 million customers at $16/month is the new calculus;

I don't see any problem here. At all. (Okay, I'm handwaving because I'm too lazy to actually look up the revenue figures, but losing subscribers when you raise your prices is not necessarily a bad thing at all.)



This is not an accurate estimation because not all of the old customers were on the same $10/month plan, and not all of the 24 million (forecasted) customers are on the $16/month plan.

Netflix's own document lays out the forecast pretty well: http://files.shareholder.com/downloads/NFLX/1403529688x0x500... (see Venn diagram). Too bad the CNN article doesn't delve into these details.


It's not accurate, but think about it: 25M to 24M is only a 4% decrease; $10 to $16 for the dvd+streaming plan is a 60% increase, and even if that translates to only (say) a 6% increase in average revenue per customer, they're safe.




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