Is Netflix done?

Yes, that’s the actual 3-month stock drop from Netflix current as of today. Remember when Netflix announced a 60% price increase? We all knew that would be a big mistake. Netflix tried to announce Qwikster, which of course failed. CEO Reed Hastings has apologized for nearly everything he has decided to do lately.

It’s getting old, really, and Netflix has declined since faster than it has ever grown.  Their shares traded around $75 for the first time in 18 months, a 36% plunge Tuesday that continues a dramatic tumble that has erased about $12 billion from the company’s market value in just 104 days.  Continue reading “Is Netflix done?” Is Netflix done?

Netflix apologizes

So here we are, with Netflix plunging as I blogged before, Reed Hastings is flailing to keep customers. Oops. Reed sent me a personal e-mail (and to millions of others, I might add =p) trying to explain his vision in raising prices 60%, and then clearing out your DVD queues and forcing you to utilize a new website, Quikster.

Dear Jason,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.  Continue reading “Netflix apologizes” Netflix apologizes

Netflix introduces Qwikster, and its rapid decline

Netflix Chief Executive Officer Reed Hastings speaks during the launch of streaming internet subscription services for movies and television shows to televisions and computers in Canada, at a news conference in Toronto September 22, 2010Boy, am I sure glad I dropped my Netflix account earlier this month. Once Netflix announced its new pricing structure and plan options, their users understandably became disgruntled. So much, that the Netflix stock has dropped so rapidly that shareholders are wanting out, and fast!

You can see the Netflix stock dropping in real-time, right here! Google Finance – Netflix

 

Since then, Netflix has decided to split off into two separate companies — Netflix, which will handle the less demanding video streaming service, and Qwikster, which will handle the DVD portion. They have attempted to put out a fire of controversy over how its recent price changes by offering an apology and new name for its DVD-by-mail business. The wholly owned subsidiary Qwikster will add games to what it rents.

No more immediate price changes will result. The price changes announced over the summer effectively hiked subscribers who get both mail and streaming videos by 60 percent. Instead of one $9.99 charge, they now had two $7.99 charges. The company said this month that it lost 1 million customers since the price change, about 4 percent of its total. Netflix stock has plunged 19 percent since the subscriber loss was disclosed. The DVD unit chief Andy Rendich will be CEO of Qwikster.

The businesses will have separate websites and customers will be billed separately for each. “It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes,” Netflix chief executive Reed Hastings said in a note sent to customers. “So if you subscribe to both services, and if you need to change your credit card or e-mail address, you would need to do it in two places.” What a pain in the ass.  Continue reading “Netflix introduces Qwikster, and its rapid decline” Netflix introduces Qwikst…