Netflix “Messes Up” Again

18 Oct

Netflix alerted the public through a blog post on Monday, “DVDs will be staying at netflix.com”, that it has abandoned Qwikster. Without Qwikster, Netflix will now have both streaming capabilities and DVD’s.  It is apparent that no one alerted Netflix of the old expression, “If it’s not broke, don’t fix it.”

In July, Netflix delivered an unpopular blog post stating that DVD services and streaming are now extra services, and that prices will go up. Subsequently, they sent out a post in September titled, “An explanation and some reflections.”  The first words of this apology were, “I messed up.” “I messed up” is a fitting heading to Netflix’s most recent blog posting as well.

Netflix’s blunders have caused them to lose business. Netflix expected to gain 400,000 customers in the last quarter, but instead lost 600,000 customers..  The Netflix stock also dropped significantly. Netflix’s poor decision-making and communication skills have caused the company to falter. The original Netflix model worked and attracted customers. Netflix took over the industry from Blockbuster and prospered. It may not be long, however, until Netflix is replaced by another more savvy company.

http://blog.netflix.com/2011_10_01_archive.html

by Robert Millman

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One Response to “Netflix “Messes Up” Again”

  1. Gregory Porter October 19, 2011 at 6:03 am #

    It is sad that Netflix still has not learned from its mistakes. I find it shocking how so many CEOs are lacking the training that we receive as sophomores in management 201. For a such a successful company to lose half its value in such a short period, one would think that Netflix would finally learn from its mistakes and fix them. Unfortunately, people feel that all Netflix is doing is making things worse with all of its recent changes and public statements/notifications.

    Greg

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