Netflix took a beating yesterday like Rocky Balboa versus Apollo Creed. The company lost 800,000 subscribers over the quarter and a huge chunk of its stock value. Ugly! Still, its earnings beat expectations.
Netflix CEO Reed Hastings has gotten the hint and, during yesterday’s earnings call, made it clear that he’s been wrong about everything the company has done since the summer.
“In hindsight, it is hard to justify. Having separate brands can in theory make sense. However after the price increase, Qwikster became the symbol of Netflix not listening,” he said at one point.
He added that the company will be focusing on rebuilding its reputation in the weeks to come and that global expansion would be halted in order to focus on things here at home. The marketing, Hastings said, has been successful, so there are no plans to change anything there.
Business Insider suspects that the whole “Netflix is dead” hoopla is over the top, a sentiment seconded and thirded by us and our GalleyCat colleague Jason Boog on today’s Morning Media Menu. (You can check out this guest column from a couple of weeks ago discussing the long-term damage to the brand.) If Netflix has truly learned its lesson, then the only way to go from here is up, and customers will be receptive.
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