Upset investors file class action lawsuit against Netflix

By on January 17, 2012 at 9:00 PM.

Upset investors file class action lawsuit against Netflix

Investors who were upset by Netflix’s poor decision making in 2011 have filed a class-action lawsuit against the company in a U.S. District Court in Northern California. “At the beginning of the class period, Netflix was facing increasing competition for streaming business, and content providers were exploring new ways to distribute their content and/or maximize their licensing fees,” the lawsuit reads. “Rather than fully disclose the devastating cost increases which were then threatening Netflix’s entire business, the defendants talked about [the company's] ability to grow.” Netflix lost as many 800,000 customers during the third quarter of 2011 when it decided to raise its prices and spin off its DVD rental service into a new subsidiary called Qwikster. The spin-off decision was soon reversed but customers had already left in droves. According to paidContent, investors are also suing because several of Netflix’s executives sold stock before it tanked due to poor decision making. More →

No Comments

Netflix streaming subscribers watched more than 2 billion hours of video during Q4

By on January 4, 2012 at 3:10 PM.

Netflix streaming subscribers watched more than 2 billion hours of video during Q4

Netflix announced on Wednesday that its streaming subscribers around the world watched more than 2 billion hours of video during the fourth quarter of 2011. The company also said it served more than 20 million streaming subscribers during the quarter. “We were thrilled to deliver more than two billion hours of TV shows and movies across 45 countries in the fourth quarter,” said Netflix Co-Founder and CEO Reed Hastings. “Netflix delights members by giving them choice, convenience and control over the entertainment they love for an incredibly low price.” The company lost 800,000 customers during the third quarter when it upset customers by raising its prices and then confused them with a short-lived attempt at a DVD rental spinoff business called Qwikster. Netflix is set to debut its original series “Lilyhammer” on February 6th and fresh content, such as Drive, Hugo, Captain America and Margin Call, will be available to customers in the coming months. The full Netflix announcement follows after the break. More →

No Comments