Netflix says it's sorry, then creates new uproar
Red envelopes and red faces: Netflix apologizes after price hike, then causes another uproar
SAN FRANCISCO (AP) -- The CEO of Netflix said he was sorry for mishandling a recent price increase that caused customers to cancel the service in droves. But the apology was drowned out by a decision that angered subscribers all over again.
The company will split into two services -- one with an odd new name that offers the familiar discs in red envelopes and another for online streaming of TV shows and movies.The DVD service will be called Qwikster, a name that is supposed to signify a commitment to fast service but quickly became an object of ridicule Monday on the Internet. The streaming service will keep the Netflix name.
http://finance.yahoo.com/news/Netflix-s … 6.html?x=0
the ceo has got to stop making so many changes ..first the price increase and now two different divisions.. customers are hard to keep in this economy
I agree. I dropped Netflix last year because I just didn't have enough money to supplement the expenditures. If I did have the money anytime soon, I wouldn't sign up with them. There are not enough movies out for me to feel like I still need it anyway and they don't seem to value customers enough to really appreciate it.
I am angry too about the split. But I also understand the motivations. He's just trying to make his company bigger. And I've read that Netflix is aiming to get rid of mailing DVD's completely. The future of Netflix is streaming, so maybe we'll only have to deal with Qwikster for a few more years.
I'm dropping the service - I expect to see the company go into bankruptcy soon!
I remember being in England when the founder of a top Jewelers (Ratner I think) went on TV and said his jewelry was crap - the company nearly failed! DOH!
The severe lack of customer service is chasing subscribers away and I was so happy with their service too!
It seems that the model may be slightly different in Australia. Our system (Quickflix) just bought out the #2 player (BigPond Movies) and has capped its pricing for long term members at AUD$19.95 per month for unlimited movies. I think that the longer term play is for the download market which should hit by 2015 once high speed broadband is rolled out nationally.
I dropped my plan down to streaming only as soon as I heard about the price hike. It seems many others have done this too. I do think they dropped the ball on the whole plan change thing, but if they can get newer/better movies streaming I will stick around.
Given how many movies on DVD are available for free from my local library, that's going to be my main entertainment this winter. Plus, you get to check out entire tv season box sets all at once. To heck with dribbling out a season one disk at a time in the mail...
We don't have cable at home, so I save $40 a month (maybe more?) right there.
For 2 DVDs at a time, plus unlimited streaming of their (not great, but not terrible) library, $16 a month doesn't seem bad. I agree that Qwikster is on borrowed time, but to me it's still essential because their online library is nowhere near complete.
Then again, any price raise will not exactly be enthusiastically received by people who were paying less for the exact same thing before.
I wonder how many people use computers to watch tv..there's a way with a tv card? not sure.
I love Netflix, but hate the BS they've been pulling lately. I'll probably drop them soon.
It seems to be a good model for anyone looking to build a mega-popular brand and find a way to burry it in a matter of weeks.
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