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.
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.
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