Netflix dilemma: higher prices, less content

Source: Cecilia Kang, The Washington Post

Here is the latest predicament for Netflix: It raised prices this week, but lost a huge chunk of its best movies. That move is spooking investors to sell-off shares of the once high-flying Silicon Valley Web giant and making some customers wonder whether they should hang on to their Netflix subscription, which has served as a cheaper alternative to cable television. Shares of Netflix fell nearly 9 percent to $213 on Friday. Its stock is 28 percent off its high reached in the middle of July. On Thursday, Netflix’s 60-percent price hike for DVD and streaming-video customers took affect. Later that day, Netflix and media supplier Starz announced they weren’t able to renew their contract — killing about 8 percent of the content Netflix streams over the Web.

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