SAN FRANCISCO (AP) — Netflix is more popular among couch potatoes than investors a year after its polarizing decision to raise U.S. prices for video subscription services.
The unexpected twist that Netflix unveiled a year ago Thursday triggered mass customer cancellations and a sell-off in its stock, which has wiped out more than $11 billion in shareholder wealth.
Netflix Inc. has bounced back this year to revive its subscriber growth. But even after a recent rally, its stock remains more than 70 percent below its peak price of nearly $305 about a year ago, largely because of concerns about spending to attract and retain customers.
Internet video hasn't been as profitable so far primarily because Netflix has had to spend heavily to secure the licensing rights to show movies and TV shows online.