As the company grapples with its biggest customer loss since 2009, Netflix is facing a similar dilemma.
With the recent decision to stop paying customers to watch shows on the streaming service, Netflix has begun to face a dilemma: How do you make money while also providing customers with a service that’s so much better than competing services?
In a blog post published Thursday, Netflix said it would no longer be paying its subscribers to watch Netflix shows on its service.
Netflix, which also sells content on other platforms like Amazon, YouTube, and Apple, said it was taking the decision in order to “avoid the impact of a loss on our bottom line and the costs of developing and maintaining a competitive ecosystem.”
Netflix’s decision to cut off support for its service comes after months of pressure from investors to get the company to give subscribers a break.
Netflix has been a frequent target of criticism for its business model.
Netflix has struggled to stay afloat as more customers sign up to pay for the service and the company’s content continues to become more expensive.
It recently raised the price of its most popular shows to reflect higher demand, and in September, it announced plans to charge $8 a month for new subscribers.
As of the end of September, Netflix had about 2.5 million subscribers, or about 1.4 percent of the U.S. population.
It said it expects its subscriber base to increase by about 3 million over the next few months, to about 5 million subscribers.
The company’s stock, which was up roughly 5 percent during the quarter, fell 7.9 percent to $1.16 in after-hours trading.