Investors sold off NetFlix after its earnings report today, down 10% on the market open, because Management said that it expects subscriber levels to stay constant in the coming quarter when price increases take effect.
As the Netflix subscriber base and revenues have grown and as we have shifted our service offering toward streaming content, churn has become less relevant and management has come to rely more and more on net subscriber additions versus churn to monitor and describe the business.
They drive a ton of data traffic and data revenue yet they do not provide sufficient management features for operators to manage that traffic across all of the networks that a subscriber may be using.
It was known that there would be subscriber cancellations and, in fact, it had been speculated that the cancellations would be higher than Management forecast.