Netflix: Who Am I? Why Am I Here?


After another round of bad news, Netflix seems to be switching gears once again, and is perhaps sending a message to customers and investors that it is unsure of its own identity. On Oct. 24, CEO Reed Hastings announced that Netflix had lost 800,000 customers in the third quarter of 2011, and that it expects to suffer even more profit losses in the coming quarters. As a result, investors fled Netflix's stock in droves, leading to an overnight share price drop of 37%. Looking to pick itself back up, Netflix posted a new content strategy in a letter to shareholders, announcing that it will become a pay-TV channel with exclusive, selective content similar to HBO, reported All Things Digital. The company seems to be pinning its hopes on the belief that, just as viewers subscribe to HBO to get access to the premium cable channel’s exclusive content, they will do the same for Netflix. This is just the latest example of Netflix reshaping its business model quickly in response to criticism. In the past month the company aborted its plan to split off its streaming and DVD-by-mail services, which itself was a response to heavy criticism of its new pricing options. It's difficult to bring customers and investors along for the ride when the destination keeps changing.




Tags: , , , , , | Comments Off

Deals of the Week

Get $150 Off PR News' PR Measurement Conference

 prmeasurement2015-dc-175x135

Join us on April 20, 2015, for PR News’ essential PR Measurement Conference at the National Press Club in D.C., and learn how tie PR metrics to measurable business outcomes.

Use code “150off” at checkout to save $150 on the regular rate.

Get $50 off PR News' Book of Employee Communications

employeecommunications-180x150

In this 5th volume of PR News’ Book of Employee Communications, our authors cover more than 45 articles on crisis communications, social media policies, human resources collaboration, brand evangelism and more.

Use code “50off” at checkout.

Save $100 on a PR News Subscription

 

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.