Billy's blog

Netflix has gained massive popularity and has become a market leader by taking advantage of changing consumer tastes. Recently Netflix announced that it would be separating its DVD business and placing it under a new entity, Qwikster.(1) Customers will now have to make another account in addition to their original Netflix account and be billed separately in order to access the Qwikster services.(2)

It seems as though Netflix has forgotten why it has become such a success.  Customers stick with Netflix because of simplicity and convenience. This tactic will only complicates matters and may also potentially anger customers. The company seems to be neglecting what the consumers want, instead they are only focused on their own growth. Netflix has to look to similar businesses in their fields which decided to ignore consumer tastes. Companies such as Blockbuster are a prime example of what happens when consumer tastes are ignored.

1) http://venturebeat.com/2011/09/18/netflix-qwikster-video-games/

2) http://www.businessweek.com/news/2011-09-19/netflix-separates-dvd-business-as-qwikster-adds-video-games.html

Picture taken from: http://www.techi.com/2011/10/netflix-aborts-qwikster/