Response to Baylee, Week 3.

Standard

This last week a classmate of mine wrote on article on the possible increase of prices for Netflix. It brought back memories of the great Netflix split in 2011. IN the split Netflix went from offering DVD and online streaming all in one package, too two separate packages. I remember the uproar and commotion it caused and according to Baylee cost them over a million customers. I think it will be fascinating to see how Netflix handles this price increase again. The first time wasn’t handled well. Although it is sometimes mandatory for companies to make hard decisions, however the damage can be minimized through effective campaigns and how they handle the situation. Netflix has a huge following, and a loyal fan base. It will be important to note how they will show their love to their customers in this time of change. Albeit a small change, it will still receive attention across the nation on social media.

Obviously how Netflix handled it’s first big change was disastrous. (Any company losing 1,000,000 customers would feel that in their pocket books). The problem was two fold in their first mistake. First, they had no strategy to prepare and help their customers make the transition. they were simply notified of the upcoming changes and forced to conform. More importantly they were cutting out half of the capability of their users. Second, they didn’t respond to the crisis. They didn’t release anything to their subscribers to calm their frustrations and by not saying anything, they communicated that they didn’t care. 

 

How Netflix plans to thoughtfully engage and respond to the problem before the changes take place will  fundamentally influence the the outcome Netflix will have from this event, especially if nothing changes but a price increase. 

Here’s a link to Baylee’s article

http://bayleedbunyard.wordpress.com/2014/04/22/netflix-is-soon-to-be-a-more-expensive-date/ 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s