Netflix, which for years has provided a streaming and DVD rental service, has recently decided to separate the two and increase their prices. Netflix will be a streaming company only, while Wister will offer rental DVDs. In an email to Netflix customers, Reed Hastings, Co-Founder and CEO, explained why the split was caused by the need for specialization. Hastings explains that streaming and DVD services have different cost structures and must be promoted separately.
Selection – You should choose a site that offers as many titles as you can, even if you are paying for it. Cinema now offers all types of films, including action, foreign, indie, and animated.
Download Platform – Use a movie downloading service to simplify the process. Total Vida allows you to download movie files from their website. Movie link also offers special software that facilitates the downloading process.
Pricing Plans – The iTunes movie and music download service allows you to download movies individually, while Total Vida members can download unlimited movies from the film library at a low monthly fee. These are just a few of the many reasons to rent online. Many other reasons exist, depending on what type of TV or movies you enjoy. You may find some services have more of your favorite things to view than others. Some companies also offer Blue-Ray DVD and games to rent.
Blockbuster memberships are still available if you want to rent in-store and return. Blockbuster still has bricks-and-mortar stores, and online shops. High-resolution movie files are essential for quality. Indecipherable pictures are not what you want. Total Vida and iTunes both require specific video RAM and display resolutions in order to provide a flixgot high-tech viewing experience. Why are Netflix customers so upset about this? These price and service changes were announced by Hastings through press releases, rather than directly addressing customers. Hastings apologized to Netflix customers and acknowledged his error in an email.
What can businesses learn from Hastings’s mistake? Always communicate major business changes directly with your customers. Customers will be more interested in hearing from you about any changes or errors than they are from the media. If your business makes a mistake, you should apologize publicly and clearly. Although Netflix customers were not happy with the decision to separate the streaming and DVD services, Hastings did a great job of acknowledging his error, explaining the situation to customers, and apologizing. However, Hastings learned that it is better to inform customers about your changes in advance to avoid or at the very least limit crisis communications.