Who Are They Serving?
Netflix made big news in recent months. Overnight, the plucky consumer technology dragon-slayer transformed itself into a villain.
Facing the very real transition from mail-in dvd’s to digital streaming, Netflix took a wrong turn. The company suddenly, dramatically increased prices on mail-in discs. They appeared determined to shift existing customers from mail-in to streaming plans. Yet, because their streaming offerings are comparatively limited at this time, it presented a poisoned choice.
In the spirit of 21st century disclosure, I am among the hundreds of thousands of subscribers who left all or part of their Netflix subscriptions. Like so many others, my view of the company, which I had supported and admired for so long, was shaken.
Was it simply a price gouge? Was it necessary financing for a tech transition, simply poorly communicated? Did CEO Reed Hastings conclude Netflix could take longtime customers for granted? Was Netflix acting with presumed monopoly power, having vanquished its primary foes?
Here’s a smart take from John McKee in Tech Republic: Netflix CEO show us the fastest way to end a successful career.
Is McKee persuasive?
In the end, as so often, it comes down to leadership: Who Are They Serving?
Did Netflix and Reed Hastings abandon their customers–or did their customers abandon them?
What do you think?
