that's a very small decline, from 25M to 24M. being 4% off on projections isn't a biggie.
what i'd like to know is how many individual accounts they had before the split in services. have the number of accounts lost been offset by the increase in revenue from people now paying for both services separately? if they don't detail that in their 10Q, we could use change in revenue as a proxy.
It's also been 15 days and they're already revising estimates. October will be interesting, but I'm more interested in the Q4 numbers to see the trend.
On the revenue side, those numbers would indicate a huge upswing, as they
apparently haven't lost anybody in the "both" category despite a 60% increase in costs (the 12 million "both" category used to be $10, now it's $16).
REVENUE BEFORE:
(streaming x $8 + Both x $2 + DVD x $5)
$119 million monthly
REVENUE NOW:
(streaming x $8 + Both x $8 + DVD x $8)
$144 million
As an investor (and someone who did cancel both) I have a hard time believing that, and if true, you'd think they would be touting that as they downgraded their estimates on subscribers, yet they say their financial guidance remains unchanged.
I smell something stinky and await October numbers.
