2M+ to Cancel Netflix

Consumer backlash hits share price
By Rob Quinn,  Newser Staff
Posted Jul 26, 2011 1:39 AM CDT
Updated Jul 26, 2011 5:27 AM CDT
Netflix says its total number of subscribers is likely to stay flat at 25 million this quarter.   (Getty Images)

(Newser) – Netflix users are so unhappy about the company's plan to raise prices and separate DVD subscriptions from streaming packages that up to 15% are planning to ditch the service entirely, a survey finds. As many as 2.5 million dual-service subscribers are heading for the door, reports MSNBC. Those staying are likelier to opt for streaming only instead of choosing both services or DVDs only, according to analysts at the Diffusion Group.

The number of new Netflix subscribers is expected to match the number of defectors, leaving the company with flat subscription growth for the third quarter of this year instead of the explosive growth investors have become accustomed to. The company's share price dived 10% after it warned investors about the effect of the consumer backlash, Reuters reports. (Read more Netflix stories.)

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