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Netflix Expected Much Worse

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THAT'S ALL YOU GOT?
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It's a been a while since America was considered a rebellious nation. Over the last few decades, our indomitable spirit and populist war cries have been muffled by strip malls, junk food, and So You Think You Can Dance marathons. Compared to the rest of the world, our chief methods of protest are a snark-filled tweet and compensatory drink or two. (Though, admittedly, 60-hour-a-week jobs and a widening wealth gap do take their toll on motivation.)

Given that hopelessness has prevailed as our default attitude in the face of a crisis, it's a little surprising that Netflix CEO Reed Hastings expected a bigger outcry in reaction to the company's subscription price hike.

Two weeks ago, when Netflix announced it would discontinue the unlimited streaming/DVD rental free for all in a single $9.99/month package, the response was pretty heated but ultimately lacking. Most people still dig the service. After the fuss dies down, they'll continue to use it.

But Hastings expected more. In this week's earnings call, the CEO said, "Believe it or not, the noise level was actually less than we expected, given a 60% price increase for some subscribers." Adding, "We knew what we were getting into, we tried to be as straightforward as we could, and that has worked out very well for us."

Hastings predicts the subscriber growth to slow next quarter but resume to normal levels in the following months.

(See also: Best Reactions to Netflix's Price Hike and Netflix Tanks at the Worst Time)

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POSITION:  No positions in stocks mentioned.

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