Skip to main content

NetFlix backtracks, but did they do enough?

So NetFlix has cancelled the spin-off of their mail-DVD service, which was to be called Qwikster. The move appears to be in response to customer churn.

The various stories on this development don't articulate whether NetFlix will continue with the price increase they did back in July. I assume this will be the case.

So really, the only thing that changes here seems to be that instead of having to sign up to two different services - NetFlix for streaming and Qwikster for DVDs - customers will get both services through NetFlix (for something like 16 bucks a month, which was the price hike over the original 10 bucks a month).

I just don't get NetFLix, they clearly know that they have ticked off customers because customers are clearly leaving the service in droves.

Given the size of this PR disastser, if they were smart they'd turn back their business model 12 months.

Revert back to a subscriber growth model versus a revenue growth model. Get people back to the service and get them believing in it again, THEN in 12 months, start to roll out pricing modifications. And this time do it right, layer additional services on to the base service package so that customers can voluntarily upgrade.

Unless they come out and decisively show that customer satisfaction is their number one priority, they are going to continue to bleed out in my opinion.

Comments

Post a Comment

Popular posts from this blog

A Look Back on 2017 / A Look Forward to 2018

Hard to believe it's been two years (and six books) since I started publishing. Thought I'd take a moment to look back on the journey, some of the highlights and what's in store for the future. Eyes Wide Open I had no idea what this publishing path would be like - I went in blind with nothing more than an interest in telling a story. It turned out to be way harder than I could have imagined. You'd think writing a book wouldn't be that difficult, but it is. It's not so much the book that readers see that's hard to produce, it's the ideas and writing that get left on the cutting room floor. But beyond the actual stories, learning Photoshop to do my own covers, understanding how to market my books, learning how to create print versions, and a dozen other things really opened my eyes to how much effort is required to get a book to market. Along the way I’ve had my moments where I questioned my sanity to put myself through the process. But...
2 comments
Read more

Pew Research says Press Credibility In Decline

According to Pew Research negative opinions about the press are at an all time high. Definitely check out the source article because they have a ton of infographics that are worth looking at. The main graph related to the research is the one below: As you can see, the public no longer views the media as unbiased or fully accurate. There are dozens of variables that play in to this phenomena, but I think the biggest one is that the public has traditionally viewed the media as doing the people's work. Which is to say, they are kind of like the FBI, but they work for the people not the government. They are suppose to root out what is going on and inform the people so that society can hold politicians and corporations accountable (note the reoccuring theme of accountability that I talk about often in this blog, because it's a causal variable behind much of the issues in the world today). Over the past 15 or so years, the press has lost it's credibility with the p...
Post a Comment
Read more

6/49 to raise ticket prices to $3 - bad PR move

If you haven't heard 6/49 (Canada's national lottery) is raising its ticket prices in September from $2 a ticket to $3. It was only back in 2004 that they raised the price from $1 to $2. So in a mere nine years, the price of a lotto ticket in Canada has jumped 300%. This comes on the back of a recent story about how salaries for OLG (Ontario Lottery Gaming) executives have risen by 50 per cent in the past two years. So what exactly is going on? It doesn't take a genius to realize that the government views the lottery as a means of generating more revenue. Approximately 30-40 percent of revenues from the lottery feed back into provincial governments (the rest is spent on prizes and operational costs). I don't know the exact math they did, but it's pretty easy to ballpark the rationale used here. It would go like this: We have 100 customers, each paying 2 dollars a ticket, generating 200 dollars of revenue. We increase the price from 2 to 3 dollars a t...
Post a Comment
Read more