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Once the up-and-coming contender of the DVD rental business, Netflix has changed the home movie market forever. Their once ubiquitous red envelopes were a secret weapon in knocking out the reigning movie rental champion, Blockbuster, and they aggressively pursued flat-rate online streaming for the mass market. The early gambles paid off, and in early-2012, the company boasted over 24 million U.S. subscribers, and their online streaming service represented over 30% of all U.S. Internet downstream bandwidth traffic during peak periods (October 2011, Sandvine).
Despite their enormous success, Netflix has struggled in the past year.
In July 2011, Netflix announced a price hike and the split of their online streaming and DVD subscription services. Additionally, they announced they would establish an entirely new brand, Qwikster, to handle the DVD subscription service. Customers were outraged and took to social media to vocalize their discontent. Netflix backtracked, but the damage was done. In the quarter following, Netflix lost over 800,000 subscribers, and, even more dramatically, the stock lost 80% of its value from July 2011 to August 2012.
What is happening today?
As the world's largest paid Internet subscription service, it's worth following closely.
This eDataSource report focuses on the details and intricacies of the Netflix business. Through an innovative panel-based process, eDataSource has estimated a wide variety of business indicators, including:
- Number of joins and cancels trended over the past year
- Overall growth by month (index)
- Free trial subscriber acquisition performance and conversion rate to paid
- Type of plan chosen by new subscribers
- Trend of subscribers switching subscription plans
- Top DVD rentals in the past six and three months
- Social media performance of Netflix on Facebook and Twitter
FREE DOWNLOAD (May - July 2012 sample report excerpt, PDF/581KB) includes table of contents, report summary, methodology and Netflix's subscriber acquisition trend for the past year.
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