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?