Netflix customers will have the last laugh
Posted by Heather Boothe on Tue, Oct 04, 2011 @ 02:35 PM
If you were a business owner, which would you rather have; 25 million rabidly-loyal customers or 24 million frustrated customers who are only waiting for your competitors to step up to the plate before giving you the proverbial finger? Netflix’s series of business snafus shows that ultimately they don’t give a flip about their subscribers. So my question becomes, if a business doesn’t care about you, other than the dollar sign you represent on their bottom line, then why should you care about that business?
On July 13th, Netflix dropped a 60% price increase on their customer’s laps. The email that accompanied the sudden price hike was pretty uninformative, and members old and new took to the web to voice their unanimous dissent over the DVD giant’s lack of regard for them as consumers. Subscribers canceled their service in angry droves. Netflix’s initial response was to shrug and say they expected to take a loss, but they had to revise their initial estimate in a letter to their shareholders to account for the loss of one million more subscribers than originally anticipated.
In September, Netflix continued to thumb their noses in the faces of their customers when CEO Reed Hastings sent an email to all subscribers that has been unanimously described as the sorriest excuse for an apology letter ever to grace the Internet. He announced the separation of the streaming and DVD rental subscriber services, and went on to state that Netflix was splitting into two different companies. The new Netflix brand will be solely dedicated to online streaming, while the DVD rental service will be redubbed “Qwikster”.
Their new business model has been met with nothing but derision from subscribers, experts, and financial analysts alike. Those who maintain both the streaming and DVD service will now have to manage their queues from two separate websites that do not integrate with each other. There will be two separate charges reflecting on subscriber’s credit card statements. The changes that Netflix is incorporating will result in more hassle and headaches for those who subscribe to both services.
Is this a case of corporate greed gone awry? Possibly. Will their once-loyal customers continue to shed their hard earned dollars towards a company that is ultimately charging more while providing no additional value? Probably not. Since Mr. Hastings’ smug apology video went viral, Netflix’s stocks have continued their downward spiral to more than 18%.
In his letter, Hastings wrote, “Actions speak louder than words. But words help people understand actions.” The continuously dropping subscriber rate can surely attest to the fact behind that statement. The sacred customer loyalty that Netflix once had in spades has been eroded, and their pristine reputation has been tarnished.
I’ve been a longtime subscriber of Netflix, but my voice will no longer be lifted in praise of the company. As I examine the myriad of other choices available to me through Redbox, Hulu, and Amazon Prime, I will let my actions speak loudly as I cancel my service and put my money where my mouth is. Take that to the bank, Mr. Hastings.
Are you a current or former Netflix subscriber? How do you feel about their latest business moves? I'd love to know, so drop a comment below!