Netflix Drops Qwikster In Hopes Of Damage Control

Netflix tries for damage control in a “New Coke” turnaround. Netflix threw its most recent venture to the cutting room floor. It was a plan to divide up streaming and DVD-by-mail offerings.

CEO Reed Hasting said on the company’s blog that the planned split was finished. The company got bad reviews that can’t be erased easily. Netflix incurred hostility in July when it announced a 60 per cent price increase to its DVD-and-streaming subscriptions. Then the split would rename the DVD business Qwikster and require hybrid plan users to have two separate accounts. Customers immediately gave two thumbs down to the plan. In the stories of corporate blunders, it isn’t quite like New Coke. Netflix chose a bad time to slip up. Competition from rivals is growing and unhappy customers are potential deserters. Netflix thinks it can get back the customers it lost. It will take time, from three to six months.

I think other companies can learn from Netflix’s mistake. If customers feel they are treated well and fairly, they will keep on doing business with a company. The business relationship is more than a good product. Any kind of unjust surprise foisted on customers will drive them away by the droves.

News info:MSNBC