Netflix talks about repairing its brand… | footnoted.com
Regular readers of footnoted know that we often joke about the Friday night dump — that 90 minute window on Friday evenings between the time that markets close and the time that the SEC stops accepting all but insider-trading related filings at 5:30 pm. So when we saw that Netflix (NFLX) filed its 10-K just 36 seconds before the SEC stopped accepting filings for the day, we assumed that there was probably something juicy inside.
What caught our attention was the new risk factor at the top of page 5:
If we are unable to continue to recover from the negative consumer reaction to our price change and other announcements made during the third quarter of 2011, our business will be adversely affected.
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What’s interesting here is that there were a number of seemingly modest tweaks in the language that Netflix had used in its prior filings (including a 10-Q that we footnoted in late October) that show that the problems created by introducing two plans to subscribers — one for streaming and the other for DVD rentals — are showing no signs of subsiding.
Ouch. Also, I heart Footnoted.
