October 11, 2011

Netflix Gets A Clue & Kills Qwikster

I got another email from Netflix yesterday, the third since late July about crazy changes in the pricing and general service of what was once considered one of the great Internet businesses.  Fortunately, the third email was the charm as it announced that the company was not going to split their DVD and streaming into two separate businsses and websites. It was a change no one wanted...except the company's CEO, Reed Hastings.

Curiously, this email was not signed by Hastings but instead sent by "The Netflix Team".  Hastings got slammed for sending an apology email about the price increase that not only didn't truly apologize but, adding insult to injury, also sprung the horribly conceived idea of Qwikster on customers. I wonder if the fact that there was already an angry dude with Qwikster as his Twitter handle and looking to cash in had anything to do with the about face.

Anyway, though this is great news for customers, it's been bad news for Netflix stockholders.  The stock hit a one year low by the end of the day yesterday.  Basically, Netflix will have a long way to go to regain consumer's, as well as Wall Street's, confidence.

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