Netflix Inc.'s plan to strong-arm customers away from DVDs and toward online video is proving a costly strategic choice.
According to the Wall Street Journal, the company said it now expects to lose about 1 million customers and more than $600,000 because of a pricing plan change which raised rates for subscribers to one of its most popular offerings. Its shares fell 19 percent. The plan called for seperate pricing on their live streaming and DVD plans, an increase of approximately 60 percent for customers who want to keep both services.
The company now expects to have 24 million domestic subscribers at the end of the third quarter, below its earlier expectation of 25 million and the 24.6 million U.S. customers it had at the end of the second quarter.
