Netflix Shares and User Base Drops

Since we're on the topic of big brand companies going crazy, we might as well chat about Netflix.  Remember a few months ago when they announced the changes to their service pricing?  And remember a lot of people got pretty upset about the matter.  Then after their current customer's were already rocked by the pricing change; they almost immediately announced that they would be moving their DVD Rental Service from under the Netflix brand to the new Qwikster brand name.  Which seemed kind of crazy, but at least they were still supporting the DVD Rental customers.

And yes, a bunch of customer's got equally upset about the name change to Qwikster as well.  This change meant that both your DVD Rental queue and your Instant Streaming queue would be in two different locations and not associated with each other.  The only thing Netflix was looking to add to Qwikster were game rentals for game consoles (like the Gamefly rental service).

Very shortly after revealing the Qwikster brand, Netflix decided to scrap it's plans to even start up Qwikster in the first place claiming they have listened to their customers.  So for Netflix the last several months have been pretty busy with them running in circles and getting nothing accomplished.

And nothing screams 'We have no clue what we are doing.  But we're doing it like a boss' to your customers than to publicly change your business plan so many times and only end up back where you were to start with and leaving your customer's just as empty handed for all the trouble.  And by the way things look, hopefully they learned their lesson.

It was reported earlier this week that Netflix has lost something in the neighborhood of 800,000 subscribers.  I don't care who you are or what your business is.  But 800,000 subscribers is a metric crap-ton of former customers (and lost business).  And due to the all of the fiasco and canceled accounts their stock prices dropped around 37% on Monday alone.  This isn't good Netflix.

So what does it look like going forward?  Netflix has already announced new content would be making it's way to the service over the coming months.  And a bunch has already been added with them scoring deals with the AMC and CW networks.  So as a current user/customer, I certainly hope they continue to add more content.  Especially since their streaming content is still nowhere as large or full as their DVD offerings.  Maybe with time that will change.  And for their sakes, they need to remember lessons learned from the last couple of months when it comes to them looking to mix things up.