The Netflix Communication Nightmare

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So, for those of you who may not have heard, Netflix has decided to not only increase its prices but also to split its lucrative business into two separate divisions. Current Netflix members may have received an apology letter from CEO Reed Hasting who admitted that the company basically dropped the ball in informing its users of Neflix’s changes in price and services.  The company would now be split into two separate companies where Netflix would handle instant streaming services and the new company, Qwikster, would send out DVDs and video games. As a Netflix user, I had no clue that the business would be divided along with the new price plans. I just thought the company was increasing its price again and would still remain Netflix. 

There was obviously a lack in communication not only for the price changes but for the dramatic overhaul in the company’s service model. Could Netflix have done something better to inform its users of the upcoming changes beside sending out a massive apology email? Personally, I believe Netflix should have done what any Apple conference or gaming conference does by announcing the changing model and showing why they are making this change in the first place. For instance, Apple and gaming companies like Nintendo attend and host conferences every year to discuss and unveil their latest product and services. By presenting it to the audience at the conference including users, business investors and of course, journalists, the companies are able to garner feedback about the change as well as give people a chance to get excited about it.

Many are wondering how viable this business model will be and whether they should chose Netflix, Qwikster,  both services or none. As cable prices continue to increase many people are turning to alternative sources to get their Mad Men or Family Guy fix, but how much longer will Netflix remain on top for instant streaming if price plans are continually increasing? Will other services like Hulu or Amazon potentially dethrone Netflix?

The sad thing is that Netflix was very successful in changing the way we watch our favorite television shows. Families, college students and professionals alike finally had a cheaper option to receive a service that while we don’t need is something that everyone wants.

Let me know what you think. Should Netflix have invested in a conference or improved their communication efforts to inform us of the upcoming changes? Or do you think the company went about it the right way and should not have done anything different?  Comment below or let me know via my twitter handle katevitek7311.

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