Comment on Netflix Numbers | Jeff Kagan Tech Analyst

Print  | 

     

Jeff Kagan

Tech Analyst

     

Ouch. Netflix is definitely hurting from this one. Customers voted with their feet. This quarter was a disaster for the company.

When a company makes big changes, they want to see an increase. They want to win. They don’t want to see the increase taken away by customer defections like has happened this quarter.

There is a difference here between investors and customers. Investors want to know whether the stock is going up or down.

Customers want to make a point. They made it. What happens next is the question we will all keep our eyes on.

Netflix big mistake was making to many changes and raising prices too quickly. The customer said ouch. The customer voted with their feet.

This is like the story of dropping a mouse in a pot of boiling water. He jumps out. On the other hand if you put him in a pot of warm water he likes it. Keep turning up the heat, bit by bit and he eventually cooks.

In this case Netflix threw customers in the pot of boiling water. They jumped out. Instead they should have turned the heat up bit by bit. Have they learned?

Will customers come back? Will Netflix recover? Probably. Unless Netflix continues to make big mistakes like this.

Things look dire right now. However they could recover over the next few quarters if they don’t keep screwing up.

Netflix online business is continuing to grow. That is the good part of this story.

* * * * * * * * * * * * *

These comments may be quoted in news stories.

Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

To be added or removed from this mailing list for comment, please send me an email.

* * * * * * * * * * * * *

Jeff KAGAN| Tech Analyst w Atlanta based jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker

~ Column http://www.ectnews.com/perl/section/jeff_kagan/

Phone 770-579-5810 Email jeff@jeffKAGAN.com Web www.jeffKAGAN.com

Other press releases from Jeff Kagan

• Apple iPhone Sales Weaker Than Expected | Jeff Kagan Industry Analyst - January 14th, 2013
• Will FACEBOOK Launch Phone This Week? | Jeff Kagan Industry Analyst - January 13th, 2013
• Nokia Not Out of Woods Yet | Jeff Kagan Wireless Analyst - January 10th, 2013
• Why Microsoft Windows 8 Holiday Sales Were Soft, Jeff Kagan Tech Analyst - January 5th, 2013
• Sprint Nextel Acquiring Clearwire for Wireless Data | Jeff Kagan Industry Analyst - December 17th, 2012