Almost laughable example of bad move single minded on a competitor but not consumers! The takeaway: always remember consumers, they are the ones you compete for!
Netflix, with its no-late-fee policy and huge inventory, was the ultimate in consumer-friendly companies. But in July, with its biggest competition, Blockbuster, in bankruptcy, Netflix raised the minimum monthly cost of its DVD-rental and streaming-video service 60%, to $15.98 from $9.99.
Customers told Netflix where to shove that value and began canceling subscriptions.
Customers complained the split would make using the company’s services only more complicated. Hastings aborted the split a month later.
In all, Netflix shed at least 800,000 customers in the three months following the fee hike. The company’s stock, once a highflyer, has plunged recently to $66 from a high of $304 in July. In November, the company said it was short cash and that it is almost certain to remain in the red through 2012.