NEW YORK (MainStreet) — After a string of controversial decisions in recent months, Netflix (Stock Quote: NFLX) now expects to have roughly one million fewer domestic subscribers in the third quarter of this year than it had predicted back in July, the company announced Thursday.
The revised subscription estimates follow a wave of consumer backlash caused most notably by the online movie service’s decision this summer to raise prices for those who stream movies and receive DVDs, as well as the news that Netflix lost its partnerships with Sony and Starz. Rumors also circulated that the company would limit how many videos customers could stream simultaneously depending on their subscription, something the company has since denied.
While the company had its reasons for each of these decisions, they have nonetheless caused many subscribers to think twice about their membership and, as the new projections show, have scared away thousands from the service all together. But even with the new pricing policies and fewer partnerships, there are several ways Netflix could attempt to win back customers.
Kiosks alone are not enough the win the movie wars as Blockbuster found out firsthand when it banked on this as its gateway into the 21st century, but having kiosks could nonetheless serve as a powerful incentive for Netflix customers. Ever since Netflix was launched, there has been one major inconvenience with its model: If you want a DVD, you have to wait at least a couple days to get it in the mail since there are no bricks-and-mortar locations. The streaming options have helped to mitigate this problem, but ultimately, if there is one movie you have your heart set on and it’s not streaming, you’re stuck waiting for it. Opening up store locations would likely prove too costly for the company, but the convenience of having kiosks at select locations (grocery stores, for example) might just entice customers.