“Some had predicted after the company announced the increase on July 12 that the blistering customer response would force Netflix to recognize that it had erred and to re-evaluate its decision,” Sandoval reports. “On the contrary, yesterday the company sounded full of confidence and even cheerful about the financial benefits the price increase would offer Netflix.”
Sandoval reports, “Whether or not Netflix has good reason to raise prices, the company has demonstrated that it doesn’t know much about how to deliver bad news. Two weeks ago, Netflix left it to a little-known Netflix manager to deliver the news that prices were going up. In September, Netflix will do away with a popular subscription plan that offered DVD rentals as well as unlimited access to the company’s streaming-video library for $10. Subscribers will have to pay for streaming and DVDs separately and each costs $7.99 per month, or $15.98 per month for both.”
“The message was a ‘a disaster,’ says Howard Belk, co-CEO and chief creative officer at Siegel + Gale, which advises companies on their brand strategies and customer experience,” Sandoval reports. “‘The tone was wrong, the quantity of information was too little, and it came out of left field. The message didn’t reflect any value to their customer base.’”
Read more in the full article here.
[Thanks to MacDailyNews Reader "Fred Mertz" for the heads up.]
Related articles:
Netflix increases prices, changes DVD and streaming plans – July 13, 2011
Fragmandroid: Netflix app spotlights Android AppLag, fragmentation crisis – May 14, 2011
Apple updates Apple TV with live MLB, NBA streaming, Netflix, Dolby Digital 5.1, and more – March 9, 2011
5 Day Most Commented