Netflix has announced that it underestimated the number of users miffed by its decision to raise its subscription rates.
The company reduced its forecast for the number of subscribers in the US due to changes it had introduced to monthly pricing plans.
Netflix started out as a DVD rental service and then branched into movie streaming. Customers were happy paying $10 per month to either watch movies online or have DVDs delivered to their homes.
Then the company decided to separate its DVD rental and movie streaming services, charging people $8 per month for DVD rentals and $8 for movie streaming. People were clearly not happy paying $6 more than they were paying earlier.
The company announced that it expects to have 21.8 million customers subscribing to its movie streaming service, less than the 22 million it had expected. Meanwhile, it reduced the number of DVD rental subscribers from 15 million to 14.2 million.
However, the number of people subscribing to both movie streaming services and DVD rentals remain unchanged at 12 million, which is good news for the company.
“Despite the guidance revision, we remain convinced that the splitting of our services was the right long-term strategic choice," Netflix said in a statement.