As technology improves, consumers shift from renting VHS movies at the corner store to downloading movies online. This evolution fostered the start of on-demand media streaming company Netflix. However, Netflix has been beaten down on its shares and popularity in the past few months, as mentioned in Armin Rezaiean-asel’s blog post.
I completely agree with Armin’s point of benefits vs features. However, he missed some important elements as to why Netflix is going downhill.
Netflix has been trying to incorporate way too many different new services and changes into the company. From price hikes to failed collaborations with other companies such as Blockbuster (Dish Network) and new services such as DVD by-mail with Qwikister , Netflix has evidently dropped the ball. With so many close substitutions to their service, even the slightest increase in price or unpopular alteration will cause a great drop in total revenue (assuming other factors remain constant). Did the company forget about their customers? Did arrogance cloud the CEO’s judgments?
The core reason why Netflix is so desperately in need of a good fix is because it’s changing too much and too fast, as Netflix’s CEO Reed Hastings said “it is possible we are moving too fast”.
Netflix CEO Reed Hastings promoting DVD by-mail services