Back with some thoughts on Netflix

I've been away from this blog for a while, but since I'm applying for jobs again, might as well come back to it. I also got a good source of inspiration earlier this week.

Netflix hit me with a blast informing me that my monthly subscription could go one of three way come September. I could:

1. Get less service for less money - I just have to make the choice of whether I like streaming movies or getting DVDs in the mail more. I have to also think carefully as to whether I want a smaller selection and longer delays in streaming or a wider selection, but not get anything instantly... but hey, I save $2.

2. Keep both streaming and a single DVD at a time program for a slightly larger than 50% increase in cost per month.

3. Cancel.

As a consumer, I'm angered from every angle. Yes, I understand cost of business goes up. Yes, I understand wanting to move customers from one service to another. But you're giving me three bad options, one of which includes "take a walk." For a company that prides itself on customer service, that is just awful.

As someone involved in marketing, the move makes even less sense, mostly because of the lack of care and insight used.

Consider what Netflix has built their brand around - Innovation, customer service, and cost-friendly entertainment. This announcement flew in the face of all of the pillars. There is no innovation in the way they are limiting service. There was no corresponding announcement of increased streaming options or a special promotion for streaming devices. If the hope is to push people to the more cost effective streaming option, then there should be more help in getting them there. This did not happen.

According to an article in adage (http://adage.com/article/mediaworks/netflix-s-prices-caused-a-customer-service-uproar/228704/) customer service reps were all over the map in helping customers make this choice. There was no company line or game plan in place. I was left wondering if the phone reps were only notified shortly before the customers because of the scattershot reaction and lack of preparedness. This is not the customer-friendly help that I've got in the past when calling in for help.

And finally, suggesting that customers may just want to quit service in the announcement email is sheer insanity. DVDs are not tobacco. They can't shrug their shoulders and say "then quit" knowing that their customer won't - this is especially true when competitors like Red Box, Hulu, and even Blockbuster are starting to cut into Netflix's success by offering slightly tweaked but equally useful services to the same customer.

In the end, this is a terrible move by Netflix, and I'm not specifically saying it is because of the service and price changes. Companies must remember what their brand is built around ESPECIALLY if that brand is successful. The crew at Netflix dropped the ball here, and they will feel the results over the coming months.