Netflix had grown from zero to hero and that lead CEO Reed Hastings to think he and the firm were bullet-proof.
However in a market driven wave of opposition the customers won and Netflix relinquished its plan to split the business in two and raise prices.
Basically things are getting back to normal. This skirmish has cost Netflix customers and revenues and stock price. It was very costly.
Now the question is can Netflix recover? It may have pulled the self-inflicted arrow out of its own back, but they still have to heal and recover.
Can they? That has yet to be seen.
The virgin blush is off of this industry reshaping company.
I think if they do everything right from now on they can recover. However that means they have to do everything right. Customers will be watching closely.
This is the kind of mistakes that companies make now and then. Remember Coca Cola with New Coke where they changed the recipe and got the scorn of the marketplace. Coke was around for a whole lot longer than Netflix.
Customers will like having one account and one password, one website and one account.
This is just what the market wants.
I think Netflix can recover if they do this right. Let’s hope.
It will make them think twice before making the next change. In fact it will make every business think twice if they are smart.
Customers have power. That is not what we think watching companies like Apple driving the changes. But customers do have power. This is a perfect example.
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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
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Jeff KAGAN| Tech Analyst at www.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ One of best known Telecom Industry Analyst
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Telecom Industry Analyst
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Phone: 770 579 5810