Netflix is acknowledging a customer backlash over its recent decision to raise prices.
The video rental company said in its quarterly earnings statement Monday it is “expected and unfortunate” that its subscribers are up in arms about an up to 60-percent price hike for DVD rental and movie streaming services. The company said while it “hates” upsetting its customers, the added revenue will help it provide better services in the long run. In the short term, Netflix warned its growth would likely slow in the third quarter as some Netflix customers cancel their service because of the price tag.
Netflix saw its shares drop yesterday after its quarterly revenue failed to meet expectations. The company had more than 25-million subscribers at the end of the second quarter. Netflix shares declined nine percent.