Netflix Kills Qwikster and Changes Course. Again.
Netflix has changed its mind once again — Qwikster will be no longer and Netflix goes back to being well, er.. Netflix again.
That brings the average of one paradigm shifting change a month from Netflix since July — when it announced its price change, then splitting up its business in September and now back to being just plain old Netflix again for October.
Here is a screenshot of CEO Reed Hasting’s blog post today:
Looks like as a previous customer of both streaming and DVDs, I will still have to pay for both services as separate services. Honestly, I am confused at this point and cancelled my subscription last month to only just the streaming part of Neflix’s services — currently known as the ex-Qwikster.
Consumer and Brand Perception:
The quickfire changes has caused nothing but brand confusion and distrust amongst its current subscribers based on its questionable moves. The more than 1 million unsubscribes and plunging stock prices since its announcement in July is the primary reason Netflix reversed the splitting of the two businesses.
The good news is, they listened.
Nevertheless, the damage is done. What Reed Hastings took 10 years or so to build up was ruined in a matter of months.
Provide value — Changes are good but changes can be excellent when it provides more for less or truly offers value to your customers. Here is a good example:
Perhaps it’s time for someone else to take the helm of Netflix. What Reed Hastings has done to his brand is what one would call a small business owner that can’t seem to get out of his own way — except in this case, his company is publicly traded has millions of customers.
Here is a quick snapshot of Netflix’s stock prices in the last couple of months.
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