Netflix claims that approximately one-third of its new subscribers are actually former customers who are now returning to the service, after leaving last year in the wake of the price increases.
According to David Wells, Netflix’s chief financial officer, speaking at the J.P. Morgan Technology Media and Telecom conference: “…we’ve said before that the brand hit will take years to recover from and I think that’s still true, with the bulk of the recovery coming in the full year and I think we still feel that way.”
The company is approaching the first anniversary of its price increases, which were initially met with public and media criticism.
“In addition, Wells said Netflix is merchandising better and aiming to burn off ‘the negative PR swirl around the brand,'” reports CNET. “Wells added that he expects the public relations hit will ‘dissipate over time.'”
“Netflix compares the address and credit card data to match up new customers with former subscribers,” explains the post. “Netflix keeps old customer data for about a year.”
Netflix claims that approximately one-third of its new subscribers are actually former customers who are now returning to the service, after leaving last year in the wake of the price increases.
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