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Until very recently Netflix seemed bullet-proof. It was thought of as the young and small company that was transforming the home entertainment space.
During the last few months they have been weathering the storm caused by their sudden pricing increases to drive traffic from one side of the business to the other.
Only recently have we started to get the sense Netflix is under financial pressure.
The question suddenly being asked, is Netflix in trouble? Will they continue to transform the home entertainment space or will they falter and maybe even fail?
According to the Wall Street Journal, Netflix stock has fallen to it’s lowest point in over 12 months after they raised concerns about their cash level and warned of a loss in 2012
Netflix took a serious hit from their customer base when they messed with the price that customers loved. They have begun to win customers back, but still have a long way to go just to get back to even.
This reminded me of when Coca Cola changed the recipe and took a serious hit themselves. Coke quickly said they were wrong, they were sorry, and have recovered.
The question is will Netflix recover? We’ll have to wait and see. They are still caught up on the downward spiral right now.
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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
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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
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Jeff KaganTitle: Tech Analyst ~ Wireless Industry Analyst ~ Telecom Industry Analyst
Jeff Kagan
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Phone: 770 579 5810
Email: jeff@jeffkagan.com
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