Heh. I saw several commercials by Blockbuster and one by REDBOX. They both use the stupidity Netflix had done as their platform for their ads. They establish why people should use them more now, and one common thing they say: "we do it for a lesser price, while netflix had raised their fees by 60%". Blockbuster had also promised an improved turn-around and better selections. RedBox is a different animal and yet they've extended the period. You can also return the movie at any REDBOX location. (example you rent in Nevada and return it in California)
Nice going, netflix, you have aided your competition in competing against you. This has resulted with you losing a lot of customers and your shares have plummetted. See what happens you believe your own hype?
Please bear with me, this is not a review on Netflix or the service they provide. This is just a simple opinion on the so-called 'apology' by the Netflix CEO. When Netflix showed up, it revolutionized the way we rented movies. I mean, it made me want to see more movies, and my rental activities went through the roof. It was such a relief and so convenient to get movies via U.S. mail with a fixed price. The heck with Blockbuster rewards that make me pay $ 0.99-3.99 … more
Recently Reed Hastings, co-founder and CEO of Netflix sent out an "apology" to his customers following a 60% price hike and subscription revamp. Since this new price increase I have heard that Netflix lost somewhere around 2 million subscribers, many of them long term patrons. Now it seems the explanation has to do with Netflix turning over their streaming option to some company called Qwikster, thus forcing customers to have separate entries on their billing statements, AND making them … more
It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes.That was certainly not our intent, and I offer my sincere apology.I’ll try to explain how this happened.
For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming.Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business. Eventually these companies realize their error of not focusing enough on the new thing, and then the company fights desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly.
When Netflix is evolving rapidly, however, I need to be extra-communicative.This is the key thing I got wrong.
In hindsight, I slid into arrogance based upon past success.We have done very well for a long time by steadily improving our service, without doing much CEO communication.Inside Netflix I say, “Actions speak louder than words,” and we should just keep improving our service.