This week, I got emails announcing changes to two online services I subscribe to. I just sort of shrugged at one message, though it did represent a significant change in the service’s business model. The second email outlined a major change as well, but my reaction to it was much stronger. It ticked me off. The first message was from Groupon, informing me of changes to its Privacy and Terms of Use policies. The second one was from Netflix, telling me it was revamping its pricing plans.
Sure Netflix customers are upset. What Netflix missed the opportunity to do was connect the fact that access to streaming content costs money. The content creators are demanding payment as fewer viewers buy/rent DVD's. The author misses the point of the fee increase when he waxes about there not being enough quality streaming content. That content will come if Netflix can earn a rate of return that enables them to pay the content creators. Since the total cost of a streaming/DVD-by-mail subscription is still less than two movie tickets, it seems like a deal to me. Again, Netflix missed the opportunity to connect that dot. Who's in charge of marketing there?
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Why Groupon Is Customer-Friendly and Netflix Is Not
Posted by: Sidney Hill July 15, 2011 05:00 AMThis week, I got emails announcing changes to two online services I subscribe to. I just sort of shrugged at one message, though it did represent a significant change in the service’s business model. The second email outlined a major change as well, but my reaction to it was much stronger. It ticked me off. The first message was from Groupon, informing me of changes to its Privacy and Terms of Use policies. The second one was from Netflix, telling me it was revamping its pricing plans.