Netflix Turns and Runs
About three weeks ago I wrote a post about Netflix decision to move to a two-site business model: one site for DVD rental, and one for streaming content (movies and tv shows that come direct to you via your broadband connection). The reaction was the equivalent of the Wall Street Live-in (or whatever they're calling the tent city that has grown in the vicinity of Wall Street to protest it's evil money-making ways).
I have to say, the notion of going from one convenient site that allowed you to keep a single, coherent list of movies and shows that you wanted to see to two separate sites, doubling your effort an oh-by-the-way, increasing your cost, seemed like a bit of a shell game and certainly wasn't very customer-friendly.
Netflix was already moving in the direction of more streaming content and less rental. Streaming content is cheaper for them, and certainly more convenient for any customer that has decent, reliable broadband.
However, content providers were dragging their heels about providing this content, so that viewers couldn't get the latest and greatest movies streamed.
But it turns out that if you let it, the market will behave the way it should: customers protested and cancelled their accounts. Netflix heard them, as most companies do whose revenues suddenly plummet due to a bad decision. So today in my in-box was this announcement from a chastened Netflix:
"Dear Nancy,
It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs.
This means no change: one website, one account, one password…in other words, no Qwikster.
While the July price change was necessary, we are now done with price changes.
We're constantly improving our streaming selection. We've recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros., Lionsgate, MGM and Miramax. Plus, in the last couple of weeks alone, we've added over 3,500 TV episodes from ABC, NBC, FOX, CBS, USA, E!, Nickelodeon, Disney Channel, ABC Family, Discovery Channel, TLC, SyFy, A&E, History, and PBS."
Let this be a lesson to all suppliers, not just suppliers of Internet content: users will put up with cost increases, as long as they appear to be warranted and are within reason. But don't make it more difficult for me. Once you've given me a certain level of comfort and I've learned how to maneuver your interface, taking that away from me is going to result in a fight to the finish - and it's not likely to be mine!
I have to say, the notion of going from one convenient site that allowed you to keep a single, coherent list of movies and shows that you wanted to see to two separate sites, doubling your effort an oh-by-the-way, increasing your cost, seemed like a bit of a shell game and certainly wasn't very customer-friendly.
Netflix was already moving in the direction of more streaming content and less rental. Streaming content is cheaper for them, and certainly more convenient for any customer that has decent, reliable broadband.
However, content providers were dragging their heels about providing this content, so that viewers couldn't get the latest and greatest movies streamed.
But it turns out that if you let it, the market will behave the way it should: customers protested and cancelled their accounts. Netflix heard them, as most companies do whose revenues suddenly plummet due to a bad decision. So today in my in-box was this announcement from a chastened Netflix:
"Dear Nancy,
It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs.
This means no change: one website, one account, one password…in other words, no Qwikster.
While the July price change was necessary, we are now done with price changes.
We're constantly improving our streaming selection. We've recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros., Lionsgate, MGM and Miramax. Plus, in the last couple of weeks alone, we've added over 3,500 TV episodes from ABC, NBC, FOX, CBS, USA, E!, Nickelodeon, Disney Channel, ABC Family, Discovery Channel, TLC, SyFy, A&E, History, and PBS."
Let this be a lesson to all suppliers, not just suppliers of Internet content: users will put up with cost increases, as long as they appear to be warranted and are within reason. But don't make it more difficult for me. Once you've given me a certain level of comfort and I've learned how to maneuver your interface, taking that away from me is going to result in a fight to the finish - and it's not likely to be mine!
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