Financial News Story of the Day – Netflix Cancels Qwikster
Netflix CEO Reed Hastings today announced that his company would be axing the entire Qwikster idea, a knee-jerk reaction to their angering loyal subscribers by raising prices 60% amid a severe recession. Nobody liked the idea – not subscribers, not investors and apparently not Netflix itself (source: YahooFinance.com).
Excerpt: “Since the Qwikster affair, Netflix shares have slid 28 percent to $112, and consumers are bolting in big numbers.
Netflix had 24.6 million subscribers at the end of June, but it warned last month that it expected a net 600,000 to leave by the end of September because of the price increase. That would be by far the worst downturn in the company’s history. Netflix reports final figures on Oct. 24 for the quarter that ended in September.
Analysts and diehard company fans are left struggling to understand Hasting’s recent moves. Some are worried about the cost to morale inside the company and whether some of Hasting’s A-team could begin to bolt.”
Personal Finance Post of the Day – Cut Your Budget Everywhere
If you really want to save money, get rid of that imaginary budget you’re going to blow anyways. FabulouslyBroke posted a great article about cutting out expenses that may seem like necessities (source: FabulouslyBroke.com).
Excerpt: “Going without a TV is not a crazy thing to me. If you want to just have the internet without TV, why not? I’d give up my hypothetical TV first over my internet.
If you don’t have money, you can’t spend on things that you think you need. Go back to the basics: Food, Shelter, Heat and Clothing.”
Daily Finance Summary – European Bailout
: The Dow Jones was up nearly 3% in a great day for stocks on the strength of a possible bailout of Belgium-French bank Dexium by the two governments. The NYSE may have been attacked by hackers, and Apple iPhone 4S pre-orders broke records despite early disappointment.
Stocks, Metals and Mortgage Rates
Dow Jones: 11,443 (+330) you earned +2.97%
S&P 500: 1,195 (+39) you earned +3.41%
Gold: $1,682 (+0.77%) you earned +12.80
Silver: $32.19 (+0.63%) you earned +$0.21
30-Year Fixed Mortgage Rates: 4.09% (+0.06)
15-Year Fixed Mortgage Rates: 3.52% (+0.08)