(Andre Alforque, Creative Commons)

In mid-September Netflix announced that in order to keep up with competitors, it would be dividing itself into two separate entities within one comany, Netflix, being a stream-only company and its newly-born sibling Qwikster, taking over the responsibility of mailing DVDs out to people.

Less than one month after the announced proposal, some customers cancelled the service and many downgraded their service to cheaper plans. The consumer outrage led to the proposal never quite going into effect, but did what did take place was a price hike of about 60 percent. Economists worried that the combination of the price hike and the spurned plan would lead to a substantial subscriber drop and lower revenues, but that has not been the case thus far and probably won't be in the upcoming future.

The initial Qwikster decision lacked foresight, but the company quickly jumped back and cleaned up the mess.

Netflix is actually faring fairly well, given its circumstances.

It doesn't take a rocket science to understand that economics are utterly unpredictable, especially in this case.

When consumers face higher fees for a service, some will opt out of the service; the surprising factor is that not many customers actually left. During the third quarter, Netflix increased its fees by about 60 percent and lost 420,000 paying subscribers; that is only about a 2 percent decline. What most reporters aren't telling you is the number of new subscribers.

Let's take a look at Netflix's revenue. Revenue rose by $33 million of 4 percent compared to the second quarter. Netflix's numbers don't lie and the revenue charts show growth of up to 51 percent on year-over-year revenue.

Even though, the article states that Netflix has also been suffering in regards to net income, year-over-year it's income was up 65 percent.

The company's net income did decline quarter-over-quarter, however that's because its subscription expenses rose, not because of its revenues.

Netflix is ensuring growth to investors by banking on the fact that it continues to invest in its streaming business of streaming service.  As its library of titles continues to expand, Netflix will galvanize subscribers and consumers will be willing to pay Netflix's higher price. The number of losses can balance the number of new subscribers.

Netflix's net income did decline quarter-over-quarter, however year-over-year revenue is up 49 percent. 

The reason that revenue is up is in part because its subscription expenses rose.

Netflix continues to invest in its streaming business, which investors should see as a positive. 

As its library of titles gets more robust, subscribers will be more interested in the streaming service and will be more willing to pay Netflix's higher price. 

Did I fail to mention that this so-called 'tanking' company's year-over-year net income was up 65 percent.

The bottom line is that investors don't care about the present, but rather focus on the future of the company.

Reach Reporter Candice here.