Power shift
Power shift
The economic clout of customers is increasing, and customers are exercising that power. When Netflix announced last summer that it would be increasing rates and splitting its streaming and DVD businesses, customers loudly broadcast their discontent on blogs and other social media.
techcitement.com/software/webapps/coming-to-a-netflix-nea...
Netflix stock plummeted.
When the CEO publicly apologized but did not change direction, in a post titled "An explanation and some reflections" blog.netflix.com/2011/09/explanation-and-some-reflections... and a related video An explanation and some reflections he fanned the flames of customer discontent: (Warning, rated V for vulgarity: Hitler Reacts To Netflix Apology and Qwikster Announcement)
The stock dropped even further.
A few weeks later the CEO reversed the decision and Wall Street punished the company even more. blog.netflix.com/2011/10/dvds-will-be-staying-at-netflixc...
At this point I think it just felt like more bad news, but IMHO it was good news.
Although the company made some bad decisions they also showed they were smart enough to listen to customers and reverse themselves.
That's why I bought more Netflix stock on October 25th. plus.google.com/117373186752666867801/posts/Jhe4os472Wh
Since October 25th Netflix stock is up more than 16%.
Related: Dell Hell:
plus.google.com/117373186752666867801/posts/dyaCc2VeXAo
Disclosure: I am long on Netflix.
Power shift
Power shift
The economic clout of customers is increasing, and customers are exercising that power. When Netflix announced last summer that it would be increasing rates and splitting its streaming and DVD businesses, customers loudly broadcast their discontent on blogs and other social media.
techcitement.com/software/webapps/coming-to-a-netflix-nea...
Netflix stock plummeted.
When the CEO publicly apologized but did not change direction, in a post titled "An explanation and some reflections" blog.netflix.com/2011/09/explanation-and-some-reflections... and a related video An explanation and some reflections he fanned the flames of customer discontent: (Warning, rated V for vulgarity: Hitler Reacts To Netflix Apology and Qwikster Announcement)
The stock dropped even further.
A few weeks later the CEO reversed the decision and Wall Street punished the company even more. blog.netflix.com/2011/10/dvds-will-be-staying-at-netflixc...
At this point I think it just felt like more bad news, but IMHO it was good news.
Although the company made some bad decisions they also showed they were smart enough to listen to customers and reverse themselves.
That's why I bought more Netflix stock on October 25th. plus.google.com/117373186752666867801/posts/Jhe4os472Wh
Since October 25th Netflix stock is up more than 16%.
Related: Dell Hell:
plus.google.com/117373186752666867801/posts/dyaCc2VeXAo
Disclosure: I am long on Netflix.