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Did You See the Netflix Movie that Bombed?

September 21, 2011 by Thomas Leave a Comment

As a business owner, you oftentimes have to put things out there and see what sticks.

What does stick can prove profitable, while other attempts can fall on deaf ears. Anyone remember the new Coke?

For business owners, effectively communicating with your customers and potential customers can mean the difference between turning a profit, breaking even and even going under.

Upset Customers are bad for Business

As many of you know, Netflix alerted subscribers a few months back that it was going to employ separate prices for its DVDs-by-mail and streaming video plans.

The end result would be a significant price increase for its customers, with the least expensive bill for customers who sought both services going from $10 to $16 a month. While $6 a month doesn’t sound like much, that is $72 a year that could go for other indulgences.

With the price increase kicking in this month, many Netflix subscribers indicated they would be turning elsewhere for their DVD and streaming video needs. Upset customers bombarded the Netflix site with countless comments, along with a barrage of tweets via the hashtag #DearNetflix.

According to the most recent data, it appears a significant number of those subscribers are holding true to their word.

Netflix recently trimmed its subscriber forecast for the present quarter, reporting it now expects to conclude the period with 24 million customers, some one million less than it had forecast just a few weeks back. When Netflix ended its second quarter at the end of June, it reported having 25.6 million global subscribers.

So, how did Netflix respond to this issue in hopes of righting the ship?

In yet another public relations nightmare, the company said it was separating its DVD mail rental and video streaming services, renaming the new DVD service Qwikster (the streaming service will remain under the Netflix name). Individuals who choose to both rent and stream videos will be required to log in to a pair of different sites and get two different credit card charges.

Research Ahead of Time Potential Fallout Issues

Not only have many subscribers expressed their dismay with the price increase, but they also were probably left scratching their heads as to the new name for the service.

As it turns out, Netflix apparently did not do enough research on the name Qwikster ahead of time, or officials would have known that the Qwikster name on social media venue Twitter is currently held by a male whose avatar is that of Elmo displaying a joint. Oops!

So not only now do you have a company upsetting many of its subscribers by hiking the costs for its popular service, but now you leave them confused with the name change, not even apparently taking the time to check and see who might hold that label on one of the most popular social media sites. Again, oops!

Due to the company’s recent gaffes, Netflix CEO Reed Hastings issued a statement to customers upset with the price increase for the service in recent weeks. “I messed up,” he remarked on the company blog and in an e-mail to subscribers. “I owe everyone an explanation.”

Running a successful business takes time and effort, but above all, the ability to always be one step ahead of the game.

In this instance, it appears Netflix and the changes it enacted, are getting tuned out by a large percentage of customers.

Photo credit: benzinga.com

Dave Thomas writes extensively for business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses. Among the topics he writes about is business cash advance.



Filed Under: Business Life, Customer Think, Marketing /Sales / Social Media, Personal Branding, Strategy/Analysis, Successful Blog Tagged With: bc, Customer Think, customers, DVD's, movies, Netflix

Net Neutrality 6-27-2006

June 27, 2006 by Liz Leave a Comment

Net Neutrality Links

I’ve added these links to the Net Neutrality Page today.

How can we keep the Bells from committing net-neutricide?

How do you detect when the Bells are committing neutricide? It can’t be as simple as measuring throughput. There’s a host in China that I can’t reach from my ISP in London because of an incorrectly configured router at Sprint. That’s stupid and painful, but it’s not the same thing as anti-neutral. Distinguishing stupidity from malice from outside is going to be very hard.

One thing we don’t want is something like the SEC’s anti-insider-trading rules. Network neutrality rules won’t have much practical use if the only way to get them enforced is to convince a bureaucrat at the FCC to raid AT&T’s sales office, seize its files, and investigate your suspicions of wrongdoing. . .

Hyperbolic neutrality nonsense

Netflix founder Reed Hastings wants to move his company’s video distribution system off the postal system and onto the Internet, where it would become a major consumer of bandwidth. He’s worried about traffic-sensitive pricing, so he invokes the all-singing, all-dancing Wonder Principle, “net neutrality”, on the opinion pages of America’s most credulous newspaper:

Today, forces are at work to stake out future control of Web site traffic and eliminate the Internet’s longstanding openness. . . .

. . . While I can sympathize with Mr. Hastings’ desire to have Fedex service for the price of a first class stamp, I’d rather not be the one to pay the difference.

EXCLUSIVE: AT&T CEO’s political donations to net neutrality opponents

As AT&T continues its battles with net neutrality proponents on Capitol Hill this week, I thought it would be interesting to see where AT&T CEO Ed Whitacre has been spending his own money this campaign and election cycle.

I went to Opensecrets.org, and checked under “Whitacre.” . . . .

–ME “Liz” Strauss

Related
NET NEUTRALITY PAGE

Filed Under: Business Life, Community, SOB Business, Successful Blog, Trends Tagged With: AT&T-SEC, bc, Ed-Whitacre, FCC, Net-Neutrality, Netflix, Reed-hastings

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