Netflix Loses Its Mojo – The Top 10 Everything of 2011 – TIME

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.

via Netflix Loses Its Mojo – The Top 10 Everything of 2011 – TIME.

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