If you’re a Netflix customer, your inbox this morning contained an email from Reed Hastings, the CEO of Netflix, that opens with, “I messed up. I owe you an explanation.”
With that, Hastings discusses the need for Netflix to move into streaming, his business fears, and the differing cost structures for a DVD business and a movie streaming business that made the cost increases that angered customers necessary. He also introduces “Qwikster,” the new DVD service that will have its own website and logo when it launches in a few weeks, splitting the company into two businesses.
Netflix has had a hard go of it since it sprung its price increases on consumers. Subscribers have fled and the stock has taken a beating.
But, this is exactly what PR experts advise a company in trouble to do; come out and speak directly to consumers, let them know their feedback has been heard, and respond. However, in PR as in life, there are no guarantees. People are in the comments on the company’s blog post saying this isn’t a real apology (he doesn’t apologize for jacking up prices) and continue to voice their complaints. Not to mention the criticisms of the new name for the DVD business. Qwikster?!
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