Always game to try out new platforms, Netflix jumped into the mix past year by developing an app for the Oculus-powered Samsung Gear VR that features a digitized living room and a virtualized screen that display shows and movies from Netflix’s substantial library.
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“This is all part of the natural evolution from linear TV to Internet TV”, he said after praising some of the “great work” being done not just by Amazon, but by Hulu, HBO and Showtime.
But Netflix’s stock price dropped almost 8 percent in extended trading late Monday after the company predicted it would only add 2.5 million subscribers in the second quarter, including a gain of 500,000 customers in the U.S. The conservative forecast reflected the anticipated loss of some longtime subscribers due to the price increase. It doesn’t want a repeat of its 2011 Quikster debacle, in which the company suddenly hiked prices 60% for people who were both streaming and DVD-by-mail subscribers.
Netflix is raising prices for new users by $1 a month as the company touts original programming you can’t find elsewhere, ABC News reported.
The e-commerce giant announced this week that it would offer its Prime service in the United States – which offers free home delivery for a vast array of products, with a streaming video service thrown in for free – on a month to month basis, rather than the current annual subscription. The problem is that so far, numerous TV shows and movies available on Netflix are still only in English. It’s no surprise this was a common theme throughout the call, as the company’s guidance for net worldwide member additions for Q2 was much lower than predictable.
Ever since Netflix launched its online video service in 2007 it’s been a strictly streaming-only affair, but according to CEO Reed Hastings that might be about to change.
Netflix will email you about the price increase just before it’s about to go into effect, so you won’t be surprised to see your bill for the service increase. Most of the time, this is fine, but it can rule out watching Netflix while travelling and means you may have to sit through the dreaded “buffering” at times.
The service added about 7 million subscribers last quarter, but it’s only projected to add 2.5 million more in the next one – with fewer subscribers coming from overseas than in the last in two years, it said. The next two quarters, though, are forecast to be a letdown. Netflix has a total float of 427.94 million shares; out of which 14.08 million shares are traded on average on a daily basis.
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HBO, however, still has a huge advantage over Netflix in terms of prestige.
