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I was a huge fan of Netflix but not so much these day. Let's play backseat CEO (this is the best kind since it's not your money to lose).
Background:
If you didn't know, Netflix during the summer unilaterally decided to up their pricing and split up there streaming and DVD services. This upset a lot of customers because a) they feel the price was too steep, b) they weren't given fair warning.
I understand the price increase because Hollywood got wise to streaming and were asking for billions of dollars from Netflix. The unilateral, unapologetic way they did it was off-putting. So the new plan came to pass and Netflix's stock fell, no surprise there. They made money this quarter but user confidence in the company fell, hence the fall in stocks.
So this morning I/we got an email from the CEO of netflix apologizing for the mess. To add more to the confusion, Netflix's service will split into TWO sites, one for DVD and one for streaming. If you have both services, you have to maintain your queue from both sites. UGHHHH. What a pain. So, I think this is a huge mistake. They've made bad decisions for the past year that has done nothing but cost them money and user confidence. Will this new plan make up for the problem? Is it going to make it worse?
I think there are good lessons here on how not to run a service business.
Background:
If you didn't know, Netflix during the summer unilaterally decided to up their pricing and split up there streaming and DVD services. This upset a lot of customers because a) they feel the price was too steep, b) they weren't given fair warning.
I understand the price increase because Hollywood got wise to streaming and were asking for billions of dollars from Netflix. The unilateral, unapologetic way they did it was off-putting. So the new plan came to pass and Netflix's stock fell, no surprise there. They made money this quarter but user confidence in the company fell, hence the fall in stocks.
So this morning I/we got an email from the CEO of netflix apologizing for the mess. To add more to the confusion, Netflix's service will split into TWO sites, one for DVD and one for streaming. If you have both services, you have to maintain your queue from both sites. UGHHHH. What a pain. So, I think this is a huge mistake. They've made bad decisions for the past year that has done nothing but cost them money and user confidence. Will this new plan make up for the problem? Is it going to make it worse?
I think there are good lessons here on how not to run a service business.