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The Borovkoff Blog

Neo-Pagan Modern Thoughts On Society

Then Netflix’s CEO made a huge error. An error in judgement based on his own pride and greed. He increased the subscription fees and reduced the services rendered. Huge mistake!

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Netflix was one of those rare companies that provided a valuable service at a low cost to thousands of people. Streaming video coupled with DVD by mail in an instantaneous manner contributed to an instant success. Stock soared. Word of mouth spread. Subscribers signed on to the Netflix service. Even as the world economy plummeted to all time lows all around, Netflix was still raking in profits and looking like a guaranteed succes in the manner of Apple.

Then Netflix’s CEO made a huge error. An error in judgement based on his own pride and greed. He increased the subscription fees and reduced the services rendered. Huge mistake!

The old adage “Don’t fix something that ain’t broke” applys to this Netflix folly. In an economy that prides itself on instability, frugality and the demise of the modern day company, Netflix had committed a huge blunder. But what made it worse is that later, after they started feeling their boat lighten as thousands of subscribers jumped ship to find better options, the power hungry Netflix CEO sent out a mass email stating that he felt the change was “good” for the company and was the “right direction” for Netflix. Wow. Sad. And he got to be CEO how?

Not only did Netflix make a huge mistake initially by increasing their customers costs and reducing their services but then they waited a really long time to send out a silly “half apology” that let everyone know that they were going to stick to their guns and that the customer was not always right. In fact, Netflix said “the customer is blatently WRONG”. Netflix disrespected their customer base.

Now Netflix is paying a deep price and is officially in serious trouble. Their stock has plummeted to ridiculous lows as their customers are continuing to jump ship. While the previous jumpers have already found ulterior methods of getting video services either streaming or by mail. Unfortunately for Netflix, even if they chose to redact their previous statements and positions, the damage has been done and the competition has stolen their customer base. Their job would be much harder to win back their evacuated loyalists.

And we wonder why corporate America is failing? With CEO’s like Netflix’s own, who needs enemies?

 

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