Netflix Cuts Customer Forecast By 1 Million

Netflix is lowering its estimate of streaming customers from 22 million to 21.8 million and of DVD customers from 15 million to 14.2 million by quarter’s end.

The new Netflix pricing model, which took effect on Sept. 1, 2011, gives customers the choice of $7.99 per month to either stream movies over the Web or rent one DVD at a time via mail. The company’s former flagship offering of streaming DVD rental now costs $15.98 per month, a 60% increase from the previous $9.99.

Apparently pricing matters.

Netflix Cuts Customer Forecast By 1 Million as Price Hike Takes Effect