As a loyal Netflix subscriber, it’s nice to see them getting what they finally deserve. It’s a story of pure greed and a classic case of “fucking up a good thing”. For those of you unfamiliar with what I am talking about, allow me to break it down timeline style.
1997 – Netflix is founded in Scotts Valley, California by CEO Reed Hastings
1997 – 2011 – A bunch of other shit happens including a brilliant business model where customers can rent a DVD and hold on to it as long as they want with no late fees. In the process, Netflix puts small video stores out of business and knocks Blockbuster right on its ass.
July 12, 2011 – Netflix’s stock opens the morning at $290.74 a share. I then get an email that explains that my $9.99 a month plan is now being split into 2 $7.99 a month plans hence making the new plan $15.98 a month. Outrage has not yet set it for me.
September 18, 2011 – Netflix realizes they fucked up. So what do they do? Instead of fixing the problem and going back to the method that works, they announce that they will be splitting up the 2 services, creating a SECOND website to log into (called Qwikster), and having seperate fees for both. The internet goes into mass outrage and the sun explodes.
September 19, 2011 – Netflix stock opens at $143.75 a share. Down more than 50 percent than 2 months ago.
October 6, 2011 – Russo cancels his Netflix account.
October 10, 2011 – Netflix announces it is scrapping its “2 company/2 website” idea and going back to just plain ole Netflix. At no point do they plan on rolling prices back. Even more people are pissed.
October 24, 2011 -Netflix discloses a loss of 805,000 subscribers in the third quarter. Stock price drops to $118.84 a share.
And that folks, is how you run a company into the ground. They could of just stayed with the successful business model and everyone would of been happy. Instead they had the stones to split up its mail and streaming service and charge more for both. I wouldn’t mind if they had some better selections for the streaming service. Instead, you get an overdose of shitty Wesley Snipes movies and Nat Geo specials on Humpback Whales. Think I’m joking? Forbes.com even wrote an article complaining how shitty Netflix streaming selection is. And to top it off, I finally found a documentary I was into. What do you think happened right as it was getting good?
Burn in Hell Netflix. Say Hi to Caldor and The Wiz for me. Scumbags.