Netflix shares tank amid backlash and defections

Actually I wouldn't say they were bad business decisions so much as poorly executed ones. The fact of the matter is streaming is the future and DVD's are the past. Adapting and moving to that future is important and that is what they were trying to do. How they did it though was poor.

By splitting the cost for the DVD and streaming service was meant to accomplish two things. Long term it is to encourage people to drop the DVD or not even sign up for it. In the short term it raises cash that can be used to shore up and secure more streaming rights. The mistake though was just doing it without offering anything to the existing members. The best thing I think they could have done was grandfather and freeze people into the existing plans. In other words so long as you don't make any changes to your plan (ie anything that would cause a cost change, such as increasing or decreasing the number DVD's you receive or adding Blu-ray) you would stay on the existing price plan. Of course if you wanted to make a change you would go to the new plan. At the very least they should have done this for at least a year. I think this would have kept people from leaving, and continue to grow with new users. If nothing else they could have taken some of the sting out of the price hike by offering a 10 or 20% discount for subscribing to both services.

The second mistake was Qwikster. Further separating the services - good idea for the long term goal of killing DVD. Doing it now while people are still stewing over the price hike (not to mention having the price hike going actually into effect) bad idea. They should have waited at least a year if not two. Reversing the decision probably a good thing but not really enough.

Anyway I wouldn't sell Netflix (in fact I'd probably buy). What they need to do right now is make no more changes and focus on getting more streaming content. I think if they can do that they'll recover just fine.

Good point. I still think it was a bad business decision, but not a fatal decision. 800,000 fewer customers sounds horrible, but compared to 23.8 million American subscribers it's about 3+%.

It may even be a good investment opportunity, but don't take that from me. I am a lousy gambler.

Actually, Big, I'm kind've curious about all of this hyper-focus on Netflix atm.

I mean, did they screw up? Most definitely! They stepped their foot in it- that much is true but... why this almost violent response of people?

See, this is what's getting my cynical chip working overtime here.....

Other companies seemed to have made either the same level of- or even worse errors back in past and were deemed relatively "okay"-case in point? The cable companies showing a net loss of subscribers not more than six months ago after raising their rates (YET Again!)- But they seemed to be doing just fine! They're doing A-Okay, it's just the economy-etc,etc,etc....

So... cynical chip kicking in....

Why is it that the one company that was mentioned over and over and over again as being the primary reason that folks can "cut the cord" is suddenly under attack for making an error that from any other company wouldn't even hit the back page?!!!

The cynic in me? I have to wonder....

Of course... I'm probably paranoid about all of this so, we'll be able to tell when the paid sponsors show up to trash Netflix.....