What an awful month for Netflix. After introducing huge price hikes on the mailing side of their business, with direct and unapologetic PR to accompany it, Netflix’s stock and active customer list tanked.
Now, Netflix has actually separated the DVD-by-mail service to a completely different name and company, called Qwikster. It would be really interesting to know if this was Netflix’s gameplan all along, or a recent need to separate itself from the now unpopular pricing structure of their business.
Netflix CEO Reed Hastings explains the decision with “Most companies that are great at something…do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business.”
Netflix is obviously forward thinking. They understand the importance – the everything that digital streaming is becoming. And those of us who had already moved to the online streaming only plan thought, “it’s about time.” But there’s that remnant. The remnant that haven’t yet changed and who don’t want to be rushed into it.
Netflix’ stock looks awful right now. The PR was ridiculously stupid. Yet, this is a company who has already led two industries in the past decade. Netflix will continue to do great.