Is it another nail in their coffin?


I know I’ve written about Netflix a few times this year: in February when I raved about the great customer service and back in July when they announced their price increase.  Customer reaction to the increase was stronger than Netflix anticipated: they lost one million more subscribers than they estimated.  Investors reacted poorly to Netflix’s adjusted forecast and NFLX has dropped more than 50% from the 52-week high.

I am not happy with the latest communication last week from CEO Reed Hastings who back-pedaled explained why Netflix was making such dramatic changes. (A little late for that.) Netflix is steadily moving to the bottom of my list of most respected companies.

People I know ended up in different programs: I went the streaming only route, my sister still thought it was a good deal and kept both, those who didn’t stream much or at all dropped back to the DVD plan and there were many who just walked away. When I dropped the DVD service I lost my queue of 485 movies that I’d been collecting for years because your Instant Queue only holds movies that are currently available for streaming.

One of the great benefits of being a Netflix customer was that your DVD queue indicated which movies were also available for streaming.  And when movies were no longer available on instant they were still in the DVD queue.  I now have to keep a separate list of movies that I need to check for availability on instant.  With Netflix splitting the programs, those “loyal” users who stuck with Netflix through the price increase are going to lose out since they will now have two distinct queues that won’t talk to one another. One of the key benefits of Netflix is now gone,  making it a lot easier for people to walk away.

I think this is another nail in Netflix’s coffin.  Do you agree?

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5 thoughts on “Is it another nail in their coffin?

  1. Michele, good post, but I actually disagree. I still love Netflix and I am still their loyal customer and fan. DVDs will soon be on the past. I personally signed up for streaming only service. I think they did everything right, with price increase and all. People are spoiled, that’s what it comes down to. Everyone wants everything for free. Many people forget that thanks to Netflix, they don’t need to pay $5-$6 per day per movie or those ridiculous late fees. Nobody ever complains when milk/bread cost goes up, but should you increase gas prices or movie rental fees by few cents/bucks – everyone goes wild. We are spoiled and materialistic nation and are putting a nail in a coffin on our future, rather than Netflix.

    • Greg
      I’m glad to hear from someone who doesn’t agree with me. You’re right that we’re spoiled but I think Netflix is the one who spoiled us all these years (see my early posts where I raved about the company) so I guess we only know what we’re missing because now it’s been taken away from us. I do think it was reasonable for Netflix to raise their prices but they seemed to do it in a way to push people away from their core product, DVDs. There are many people who can’t stream so DVDs will need to remain an option for now.

      Michele

  2. We went all streaming with Netfix and Android now has an app that is supposed to let you watch on your smart phone but for some reason will not work on mine. I works fine on my Grandsons though. His is smarter I think! We use Red Box for DVD’s now. There are many more up and coming and if Netfix doesn’t watch out they will be in last place. We just bought a new Blueray player and I was surprised at all of the different movie offerings that were on the menus within it.

    • Thanks for sharing Dave. I definitely see us getting more movies from Redbox though it’s not as convenient as Netflix was and doesn’t have the broad selection to pick from.

  3. Pingback: Make the best of Netflix streaming « How to maximize money for your stuff

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