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I just read an ABC Nightline interview article with Netflix CEO Reed Hastings regarding the recent controversy with package and price changes.
In case you are unaware of all the hubbub, basically Netflix raised their rates in early 2011 and then a few months later split thier DVD from their streaming product in essence raising their prices yet again. According to the ABC Nightline article, Netflix lost 600,000 subscribers and saw their stock value plummet by 50%.
The results and feedback from this action ultimately prompted an apology email. In the email Mr. Hastings, the CEO, basically says what was clear from all the outrage feedback was that we the customers wanted more humility & respect before being screwed over.
It would also seem Mr. Hastings is under the impression we are upset because of the speed in which they moved and the lack of information. For some reason, the thought that maybe we are upset by the price increase and loss of DVD/Streaming plan escapes Mr. Hastings as a possible reason. To be honest, I know of no Netflix user, former or present, who is outraged at the lack of humility or respect or speed or lack of “why”. We are upset because the streaming options suck and we got screwed over by Netflix.
And if thats not enough, the reason all this took place was because Mr. Hastings has been afraid that a successful DVD Netflix would be unable to transition to a successful streaming Netflix. So the solution apparently was to spinoff the DVD division into some other brand. I guess Mr. Hastings just assumed that keeping the Netflix name for streaming would automatically make it successful. Good thing success does not require a quality product.
To me, the email apology points to either a clueless CEO, or a less than genuine apologetic CEO.
Related articles
- Netflix CEO: Not Communicating Service Changes Was a ‘Big Mistake’ (abcnews.go.com)
- “I Messed Up” – Reed Hastings, CEO and Co-Founder, Netflix (inquisitr.com)
- Netflix to Spin off DVD Division (techbookshelf.com)
- Netflix CEO Reed Hastings on Qwikster & What Went Wrong [VIDEO] (mashable.com)
- Netflix’s Qwikster Twitter Dilemma and Letter from the CEO (blogworld.com)
- Al Lewis: Offensive non-apology by Netflix CEO (marketwatch.com)
- Netflix’s Qwikster: A Bad Name and a Bad Idea (slashgear.com)
- Silicon Alley Insider: How Netflix Walked Away from 95% Of Its Revenue — And Why It Worked (NFLX) (businessinsider.com)
- Netflix Has Lost Half Its Value in Two Months (mashable.com)
