The Netflix Crisis

As of recent, Netflix has been the latest victim of a PR crisis. The CEO of the company, Reed Hastings, has released a statement saying that he ‘messed up’ by not communicating to his customers. By the looks of it Reed has done a little more than mess up.  The company stated in a  blog post last weekend that it is planning to split into two companies: one company that delivers movies and TV shows via streaming, which will keep the name Netflix, and a second company that delivers DVDs via mail which will be called Qwikster. With the combination of this news and the the recent price hike, Netflix has drawn in mass criticism and a flood of unsubscribers, all apparently due to a lack of communication. Also, a blog named TechCrunch has made it know that “Qwikster” is already the name of a twitter account whose picture shows the child’s character Elmo smoking a joint. This has also caused the company to receive the question “Did you even bother to check this first?” in a countless number of ways.

It seems that the member of the Netflix team have either been in comas or have been very careless. This entire situation could have been avoided. Firstly, they made this huge announcement about splitting into two companies without even consulting there already current customers opinion. Secondly, it doesn’t even seem like this story has been spun whatsoever to make Netflix end up appearing at least slightly positive. The CEO issued a statement about how communication was poor and that was it, like the customers hadn’t already figured that out. Obviously if you were listening then you wouldn’t have lost a slew of subscribers because of an idea that everyone hates. Ironically enough, the “Say No to Qwikster” Facebook fan page now officially has more fans then the actual Qwikster fan page itself. I think it is safe to say that this all could have been avoided if handled differently. The idea and benefits of Qwikster should have been thrown out there before Netflix actually announced it as being so.