Wednesday, June 18, 2008

Netflix Just Gave Their Customers The Finger

So this is what happens when you destroy all of your competitors and become the only game in town? Netflix today announced that they would be discontinuing subscriber's ability to divide their movie queue into multiple 'profiles' (so called Netflix Profiles). If you don't have Netflix, what this means is that your wife, husband, child, etc, used to be able to have their own queue and as they send back their movies, a new movie ships from their queue. Now, Netflix subscribers will be limited to just one profile, just one queue. That means that there will be a lot of figuring out who get's the next movie in your house, and moving that to top of the queue. It also means you're going to get recommendations based on your rental history of Disney films and seasons 1 & 2 of Blue's Clues.

Why did Netflix do this? No one knows. They're keeping their cards close to the vest on this one. They did tell us that "While it may be disappointing to see Profiles go away, this change will help us continue to improve the Netflix website for all our customers."

Huh? Did profiles prevent you from improving the website for 'all' your customers? What about all the ratings that were linked to a profile that will be deleted? Does that improve the website?

I've been a Netflix customer for over 3 years. One of the amazing things about them is how their service got better and better over time. Now, with this 'final decision' they have taken a huge step back. I can only think of one reason why they would do this: MONEY. Yes...everyone's favorite reason to screw people over.

If Netflix does away with the queues, they're hoping that customers who lose their queue will open their own account. Thus an unlimited, 3-at a time plan goes from $16.99/month to $18.98 (for 1 and a 2 at a time unlimited account). So for that $2.00 pricing change, Netflix just gave all their customers the finger. What brilliant fresh-out-of-college MBA came up with this idea? The Hacking Netflix Website posted this story (in shock like the rest of us) at around 9pm. Over the last two hours, there have been over 100 comments posted. That's probably more than any other story they've ever posted.

Here's an idea, in protest, every Netflix member should downgrade their account to one of the cheaper plans.

Did they cover customer backlash in your MBA course?

1 comment:

Anonymous said...

Doesn't Blockbuster offer a competing product?