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Media-Minded: Memo to Hollywood, Netflix is Your Friend (Mobiledia)
Netflix's subscriber count took a hit after poor pricing restructuring and
resistance from content providers unwilling to negotiate licensing deals, but
new data suggests the streaming company is poised for a comeback.
_**Media-Minded** is our column charting how technology's opportunities and
challenges transform traditional media and entertainment, for better or for
worse._
The Los Gatos, Calif.-based company endured a bit of a rocky road in 2011
after hitting an all-time high in subscribers. Failure to renegotiate its deal
for Showtime's programming and being snubbed completely by HBO led to a loss
of 800,000 subscribers in less than three months, leaving the company reeling
as it faced questions about the future.
After Netflix tried to change the prices of its subscription fees, which led
to angry customers and criticism from the media, the company's stock plummeted
and it issued an apology to subscribers and shareholders. Still, Netflix
finished the year strong, adding more than 600,000 subscribers in the fourth
quarter of 2011, and as the company faces an uphill battle against studios and
other content providers, there is some reason to think it stands a fighting
chance.
**Online Outpacing DVD**
It's clear people love to watch their movies online. The ...