Wednesday, September 21, 2011

Netflix Apologizes for its Pricing – Not That It Will Change It

Sorry About That Chief

Several weeks ago the Netflix company bombarded its successful business model with a big pricing change.

 The result

It was, after all, just that kind of change that prompted outrage among Netflix customers this summer, when the cost of a subscription that included unlimited online movie streaming plus one DVD-by-mail at a time went from $10 per month to $16 per month. That 60 percent increase has cost the company about 1 million of its 25 million customers, a greater exodus than they expected, company representatives have said.


So the President of the Company is sorry

“I messed up,” Mr. Hastings said. “I owe everyone an explanation.”

So what is the company going to do?

The price of the company’s services will not change.
“We’re done with that!” Mr. Hastings said.




What We Have Here is a Failure
to Communicate

So what’s the problem, why even bother with a public statement.  Well the problem was not the pricing, the head of Netflix

blamed his own “arrogance based upon past success” for a failure to communicate in the face of a fast-changing business model.

“We realized we should have communicated better in July when we announced the price change,” said Steve Swasey, company spokesman. “That’s a mea culpa on that.”

No, this was just a communications problem. It was a “failure to communicate” (see Strother Martin and Cool Hand Luke)  No big deal. 

Is this man ready for politics or what!!

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