Image via CrunchBaseI rooted for Netflix when it decided to bet on streaming. (Netflix Cut Off The Gangrene Limb) And then its stock price collapsed. And that surprised me. But now looks like Netflix is bouncing back. That stock price drop was a sneeze it just had to wade through. But cutting off DVDs before the market cut off Netflix was a smart move. It was a life saving move, to put it more bluntly.
A drop in the stock price was the price Netflix paid to stay alive long term.
GigaOm: Netflix streaming users now outnumber DVD subscribers 2:1
even with its steep decline in DVD rentals, the overall number of customers is growing again. Netflix lost 810,000 U.S. subscribers in Q3 as a result of its unsuccessful attempts to spin off the DVD business into a separate company, as well as a price hike earlier in 2011. In Q4, that combined subscriber number once again grew by 610,000...... Netflix won’t enter any other territories in 2012, and might have to work on making more money with streaming if it wants to keep expanding in the future. Because DVDs may not be around for much longer.
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