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So let me see, Netflix is doing us a favor again by rescinding a stupid idea they had and we should be happy because they listen to their users? How lame can you get? It is clear that Netflix has zero understanding of their customers and seem to care less. I found their line about the price increase amazingly snarky, why even bring up in this context if you are doing nothing about it, you are just reminding people what douches they are.
Quite frankly what Netflix has done is one of the greatest marking blunders ever, on par with new Coke. Netflix over the years had built up a pool of positive feeling by users and they blew it. The price increase was an issue, anytime you have a 50% plus increase for a service or product you are going to get some back lash, scrutiny, but the tone of their announcement is what I think most people objected to.Essentially they tried to pass the increase as if it they doing a favor to the user. The attitude of Netflix when users started to complain was so what we know we will have a few disgruntled customer so big deal. A million lost subscription in two months is a big deal, it also indicated that most likely there still a significant number of dissatisfied customers that will leave in the coming months. The latest move is crazy because on top of the price increase now they are taking away the familiar experience that user have become accustomed to and replacing it with the requirement that customers interact with two sites. If customers have to interact with two distinct sites, why not Blockbuster or Facets? They have given users the excuse to look elsewhere. Maybe DVD is dead, but it still is the largest part of Netflix business and the largest cashflow generator. Netflix pretty much dominated the DVD rental business, with action they have give new life to their competitors. I also think some folks may be right and they are thinking of selling the DVD business which is labor intensive and requires multiple locations to cover the USA in a timely manner, but that is its value, the infrastructure is set and thats why Netflix managed to beat off competition. The cost of the infrastructure and develop efficient systems to cover the country prohibitive. Streaming well that is a different story the cost of entry not so high on the infrastructure end, a bunch of servers and fiber and you are good to go. They could well be opening the door to a competitor that is better liked and connected to studios or the studios themselves, since as a streaming service they will have nothing to distinguish themselves. The best advise to Reed is if you are in hole and want to get out the first thing you do is '' stop digging''.
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Sep 22, 2011