You may recall that about two months ago, Netflix raised the price of their services. Well that hike didn’t go over too well with consumers and Sunday their CEO offered an apology.
“Remember when Netflix was a business that cheaply provided a service people wanted? Now Netflix and Qwikster are two businesses that less cheaply provide services that people only kind of want.
On Sunday night, the CEO of Netflix announced, in what may go down in history as the World’s Worst Apology Letter, that Netflix is sorry about doubling the price subscribers had to pay and, by the way, it is now dividing into two businesses, one to supply online video, the other — named Qwikster — to continue mailing you DVDs in red envelopes.”
The Washington Post editorial offered a biting commentary on what the company is really trying to do and how they feel the company has failed its customers. They wrote what they thought the CEO’s letter was really saying.
So I didn’t understand it all until I read this editorial. I didn’t get that they were trying to get out of the DVD mail business. I can see how streaming will be the wave of the future but it seems like we’re not quite there yet.
At first despite the giant percent increase for the service we were going to stick with them but now Michael is thinking we may drop the service all together. Since they are losing their relationship with Starz in 2012, he thinks we could do as well streaming Hulu and occasionally renting from Red Box or renting via iTunes.
So what did you make of the apology and the splitting of the service? Have you decided to stay or will you switch your business to other companies?