CUSTOMER BACKLASH: Netflix is preparing for a dramatic slowdown in its subscriber growth as customers rebel against changes to its online video and DVD rental service that will raise prices by as much as 60 percent.
WORST-CASE SCENARIO: A forecast released Monday with Netflix Inc.’s second-quarter earnings envisions the service picking up as few as 190,000 subscribers in the July-September period. That would be the lowest quarterly gain in three years.
MARKET REACTION: Netflix shares plunged by more 10 percent in extended trading. Investors didn’t seem to care about a 57 percent increase in Netflix’s second-quarter earnings.