Netflix Pulls Fast One

Netflix is once more trying its hand at reactive damage control in reaction to a recent mass exodus of users. The negative feedback is largely due to the company's move to raise rates on its combined loading and DVD by mail service, which formerly cost $9. 99. Company analysts believed separating both services and charging $7. 99 for each would be the best move for Netflix over time. They obviously did not account for the viral nature from the complaints and the value customers put on continuing their own service.

This morning I received an email from Reed Hastings, the actual co-founder and CEO of Netflix. It contained an apology, as well as referenced more changes to my Netflix account. To additional separate their DVD by mail and streaming businesses, Netflix has become going to charge them separately on my credit card and also the DVD mail service will now be called Qwikster. The only improvement so far as I'm concerned is the option to add video online game rental to my account, which will also add an additional charge.

Netflix made a big mistake introducing the streaming service like a bonus to its mail-order service. If the company had started it as a separate service to begin with, customers would have no basis for complaints and Netflix would be a growing and thriving company that enjoyed high satisfaction and customer support ratings.

I understand that the two services deserve unique attention and marketing, but the way it was handled makes me seem like I am a victim of highway robbery. The support I paid $9. 99 for in August suffered the 60 percent increase in September.

The Internet and more specifically social network has exacerbated discord to an extent never before observed in reaction to a single policy change by any organization. Even after it became apparent that the move had been wildly unpopular, Netflix refused to compromise on the plan, which to the company itself was a strategic separation of two completely different offerings, but to customers was nothing more than the drastic price hike.

While the email and press release managed to get clear that I am now a member of Qwikster, Netflix won't go back to its successful business model and the company regrets losing a lot of customers to a blatantly bad business strategy, I just seem like it's another insult to my intelligence and another nail within the Netflix coffin.

My circumstances have changed since I originally subscribed to Netflix. I would have been considering dropping the service at the moment regardless of the price hike and changes to the actual format. However, I would have been much more prone to stay on as a customer if Netflix would have made an attempt to compromise with the large group of upset clients.

The DVD by mail service is extremely fast as well as, aside from an occasional scratched disc, I never have any issues with the actual service. If they cannot make some kind of concession to me for staying loyal after the substantial exodus, I don't believe I will ever receive a DVD inside a Qwikster sleeve in my mail box.