Some time ago Netflix, a very successful company, made arguably the worst decision possible for their company. What was the decision? They raised their prices without consulting or even notifying their customers first! The low priced cost and quick delivery was an awesome ploy for business in the movie and game rental market and Netflix was at the top. In July they decided to double their prices and lead to a humongous drop in their stock prices and lost over 40% of their customers.
Netflix since then has apologized and lowered their prices to even below the normal line they had when they first stepped onto the scene as the number one movie rental site. They had it going on, but seemingly destroyed themselves with one majorly detrimental decision. Though Netflix has seen some of their customers return in recent months, it is still very far behind from where they were when they were number 1 back before the turn of events in July. I feel that Netflix will never make a come back from this and eventually will be sold within the year. The only way they will survive is to come up with something innovative for their rental business; however, with many other companies arising in the online rental and streaming market, I have a feeling that Netflix is going to be set up for failure in the near future.
One Response to “Netflix Gone Wild: Why Netflix Will Be Sold Very Soon”
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This is incredibly interesting. I feel like I learned something about why a company should not become too cocky because then you start making stupid mistakes that then gives your brand a hatchet. It will definitely be interesting to see if they survive or not. I’m not willing to wager a bet on yes or no yet, but I wouldn’t be surprised if there was some movement and major changes in the near future.