Monday, September 26, 2011
You Win Some, You Lose Some
Netflix recently started its second uproar in the past few months as Netflix CEO Reed Hastings announced the complete separation of its DVD and streaming operations. The DVD service will be called "Qwikster" and is like the lousy dog that has been kicked out the back door to feed on the scraps. Customers all over the world were enraged by the 60% hike in price with nothing new back in July. Now they have to go to separate sites and manage separate queues. Sure, streaming is the business that is only going to bloom, but I think Netflix made the move too early. They asked for more money and only gave their customers more inconvenience. Yes, they won in the sense they have become the largest source of Internet traffic, but I think this year they definitely lost one with the number of enraged customers they created. They could have kept customer trust if they made the move after adding new content like the Dreamworks deal for 2013. Will Netflix recover customer trust in the end? Only time will tell.
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I think they grossly underestimated the effect this would have. I personally have reconsidered ever signing up for their service and will instead consider alternatives like amazon prime or even hulu.
ReplyDeleteI just got an email from Netflix announcing that Quickser is dead. They actually started listening to their customers again and are keeping everything at netflix.com. The price increase remains, however.
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