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Thousands of users drop Netflix after subscription price hikes

Netflix hiked prices – then lost subscribers. (JONATHAN NACKSTRAND/AFP/Getty Images)

It seems Netflix has some stingy users, with its second quarter report showed the streaming service provider lost a whopping 126,000 US subscribers - after it raised its prices.

Earlier this year Netflix hiked prices by anywhere between 13 and 18 per cent, depending on its services.

That took its most popular plan, which gives customers two simultaneous streams, to US$13 (AU$18.37) a month – up from from US$11 – and its cheaper US$8 plan to US$9 (AU$12.79).

And it’s clear US users didn’t love the change. It’s the first time the company lost domestic streaming customers since it started its service 12 years ago, The New York Times reported.

And not only did it lose subscribers; it actually undershot the number of customers it expected to sign up worldwide for the period – only 2.7 million subscribers actually signed up compared to the five million its investors expected.

On top of that, Netflix stock fell a whopping 9 per cent in early trading on Thursday, but chief executive Reed Hastings didn’t bat an eyelid.

“Our position is excellent,” Hastings reportedly told analysts after the release of the earnings report.

Despite the bad news, Netflix forecasts a further seven million subscribers will join this quarter after the addition of Stranger Things.

The service also remains the nation’s largest internet television network, with over 60 million paying subscribers in the US, and 151 million subscribers globally.

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