When you are a business that provides a luxury not a basic necessity of life such as DVDs and think you are a monopoly, people don't have options and make price hike and new streaming decisions in the cocoon of your plush offices, affecting price conscious Americans hurting from the recession, you are looking to ruin your business, lose customers (800,000 of them as a matter of fact) and induce a stock price decline by stock holders dumping your stock.
That's the lesson DVD by mail giant, Netflix had to learn from their blockbuster price hike blunder. As a company who had humble beginnings in 1997, I don’t know who was thinking what when they came up with this “bright price hike & streaming idea.” I hope it wasn’t the idea of some new Ivy League MBA grad they hired or something like that because that person is probably looking for another job right now.
As the saying goes, “If it ain’t broke don't fix it.” Coca-cola and some other big businesses have had to learn this lesson the hard way. I hope Netflix and other businesses considering such silly actions learn from this.
A word is enough for the wise…
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