On Mon, Sep 26, 2011 at 4:52 PM, Wesley McGee <[email protected]>wrote:
> > The problem is customers don't care about soon-to-be improvements. Right > now, Netflix is becoming a worse service (and the Dreamworks deal doesn't > start until 2013). And very rarely has a business successfully sold a > price-hike on the argument of "well, things are not great *now* but with > this price increase, we hope to make the service better *two or three > years from now*." Customers will generally say, "well OK, then. In two or > three years, *maybe* I'll consider subscribing again." That is the > argument you give to potential investors. And thanks to Netflix mixing up > the investor argument with the customer argument, the investors are selling > the stock, rightly fearing Netflix has annoyed the customer one too many > times. > Right. But my point is that Netflix really does not care that much about the current customer. I don't think they are really saying to us "hang in with us, we will be great in a few years". They are saying to themselves that if they dont free up enough cash to bid for major content, they wont have a meaningful business at all in a couple of years. In fact, they realized that they were focusing too much on down the road, and pissing off too many of their current customers - but they really did not lose that many. In 2 years, Netflix will either be a provider of enough major content that they are getting a big share of their market, or they will not really be a major player at all. The 1/25 of their current customer base that they may have lost will not register one way or the other in the big scheme of things. -- TV or Not TV .... The Smartest (TV) People! You received this message because you are subscribed to the Google Groups "TV or Not TV" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/tvornottv?hl=en
