Netflix Regains Customers And Stock Share
After losing customers to changing business plans, Netflix seems to regained some ground in the 4th quarter of 2011.
Netflix has regained almost as many customers as it lost following an unpopular price increase, signaling that the video subscription service is healing from its self-inflicted wounds.
Fourth-quarter figures released Wednesday show Netflix Inc. ended December with 24.4 million subscribers in the U.S., up from 23.8 million at the end of September. That gain of about 600,000 customers compares with the loss of 800,000 subscribers last summer after it raised its U.S. prices as much as 60 percent.
That’s good news for investors.
The uptick is a positive sign for Netflix after several months of upheaval battered its stock. The shares reversed course Wednesday, surging nearly 16 percent.
The fourth-quarter performance should help bolster confidence in Netflix CEO Reed Hastings, who was skewered in Internet forums and analyst notes for miscalculating how subscribers would react to higher prices.