THE problem with Netflix was that they failed to realize one very important thing: There were two reasons for their current success:
- It was easy,
- customer loyalty to a company that valued them.
Yes, there are and were other competing services. But did you ever call in to Netflix help? WOW great, positive people, who bend over backwards to help, solve your problem and generously give out little extras to make up for any glitch.
So who cares about a little this or that? You get your DVDs and easy streaming all in one, with great service and an excellent web site.
Well, first they did away with the good will. Customers can see that a company needs to raise prices once in a while, but the huge hike while they were already making a big profit? That effectively killed the customer loyalty issue. Hey guys, learn this:
Loyalty is a 2-way street!
Now you have the separation of DVDs and streaming. There goes the easy portion. (Like you never heard of a company with more than one product that bills for both at the same time????)
I see a world in which Netflix joins Hollywood Video in that corporation place in the sky. All because they shot themselves in the foot. And on purpose!!