Tag Archive: Netflix


NetflixYea!  Netflix is waking up from their stupor.

Over the past couple of months, Netflix has doubled prices, tried to spin off their DVD business and alienated customers, investors and bloggers all over.  Now, they have apparently started waking up to their in-company insanity and are starting damage control.

As eloquently stated by Flack Me, Qwikster joins the ranks of New Coke and Windows Vista in becoming the marketing joke of the century.  Perhaps even the Millenia.  I outlined some of Netflix’s blunders in September, showing just how absurd the progression was.

From the price hike to the idiotic idea that anyone would want to log into 2 different websites and maintain 2 different lists to pull entertainment content from the same source, Netflix leadership was making decisions with their hindquarters, not their brains.

Did anyone do market research, a focus group, Facebook poll?  Clearly not.  A million subscribers spoke with their wallets and let the formerly excellent company know how they felt.

The only question now is can Netflix regain the loyalty and trust of their customers and investors?

NetflixFirst I raise rates and thumb my nose at customers.

Second I tell them “so what”

Third I tell stockholders I underestimated how much customers were ticked off.

Fourth I say “mea cupla”, I didn’t mean to hurt your feelings, but the prices stand.

Fifth I announce a great venture splitting up the company.

Sixth I find out I don’t own the new (stupid) company name.

Seventh I try to explain the business justification for all the changes.

Eighth I find I lost the company a bundle of money.

Ninth I lost a valuable streaming partner.

Tenth I start over again, maybe I’ll listen to my CUSTOMERS.

In July I blogged here about the Netflix proposed price increases and hoped that the company would come to their senses.  Unfortunately, just the opposite has happened.  The scandal with Netflix, the proposed Qwikster, the price and structure changes and the Twitter account seem to grow worse by the hour.

Companies have the right to run themselves however they see fit.  They do not have to kow-tow to customer needs and wishes.  It is fine if a company wants to do the exact opposite of what market research shows is the trend.

By the same rules, customers have the right to take their money and their business elsewhere, to a company or service that does meet their needs, wants and budget.  So Hola, Netflix, we once loved you, but you don’t talk to us anymore.

NetflixWell times are hard everywhere folks.  Now Netflix, a company who made a $83 Billion profit in 2008, is crying that they need to double customer prices to pay for new content.   Please note, they just made an 80% price hike 3 months ago.  So, for their short-sightedness we, the customer must pay.

This presents just the latest example of big business stomping on those who made them big business.  Netflix was just a little nobody in 1999 when I initially joined.  I loved not having to run out and get a DVD from the store only to find it was “out”.  After a few years, I dropped out and used cable for a while.

I came back to Netflix a couple of years ago as part of a streamlining of my lifestyle.  I spend lots of time on my computer, but not too much watching TV.  Netflix made sense over cable as a cost efficient entertainment option.  I use both DVD and streaming because many of the things I want to watch are not available to stream.

In a recent article on CNet Greg Sandoval questions if Netflix will change their mind,  Since their CEO’s response is “our prices are our prices”, it doesn’t look good.  This anti-consumer attitude is what caused customers to leave Blockbuster in droves.

Hey Netflix, your customers helped you grow with word of mouth and loyalty.  This is because you were a great place to do business. Now, you are just another evil empire.

Maybe Netflix will wake up and go back to their origins or perhaps they will forge a new business path and listen to their customers.

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