In one of the of the most watched self implosions by a major company with so much potential, Netflix today is taking a bath on Wall Street and has stocks trading at the time of this writing at $77.53 which is down 35% for the day. This price of course is miles off from their July price of over $300 dollars a share. Netflix, which seems to be plagued with very poor management decision making, felt that dividing their two services of DVD Rentals and Online Streaming would be a good thing and decided to start charging $8.99 for each, making customers still wanting both to absorb a 60% price increase. This marked the beginning of their stock value plunge and continued to experience problems as STARS decided not to renew their contract with Netflix leaving them with a huge hole in their content to try to fill. STAERS added a lot of movies unavailable to Netflix anywhere else. Later, Netflix would realize their mistake by splitting the services up, or by forcing customers with such a huge increase by trying to separate the Netflix brand from this issue and open QWIKSTER which would be the DVD rental arm of their business. Again, the public and Wall Street didn’t buy it and QWIKSTER was killed off before it ever really began. Here are our related articles:
Netflix feeling the sting of splitting services
Netflix apologizes and separates DVD rentals
Netflix, where do you go from here? I might suggest holding off any any further apologies that the public won’t buy into anyway and run some specials on your content to lure them back into the fold. Small incremental increases after that would be met with more favor than a sharp 60% increase you tried back in July. Seriously Netflix, this isn’t that hard, get it straightened out would you?