Sunday, September 25, 2011

Netflix?s Pain Is Blockbuster?s Gain

For years, I?ve pointed to Netflix as one of the shining examples of the Subscription Economy. But in two painfully long weeks, Netflix has taken a huge misstep, violated the trust of its customers and even opened the door to its supposedly long-vanquished elder, Blockbuster!

Few remember this. Netflix started out as DVD by mail, but with the same restrictions as a retail Blockbuster experience (e.g. late fees, etc.). Then Netflix realized something important that changed the company forever. Success wasn?t tied to the number of DVDs it shipped. It was the number of customers they had and could hold onto. Rabid customer loyalty was key to its success then and it still is today.

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1 comment:

  1. It was a bummer the Netflix had to disappoint their subscribers like that. I myself was a Netflix subscriber, I removed it from list of bills though, after 3 years of loyal patronage, to get a price increase like that was a slap in the face. On the 1st I'm going to sign up for the Blockbuster Movie Package, working at DISH I already had the DISH platinum package for the 20 movie channels, and now I can add streaming on my television from blockbuster, which I am sure will grow to add in more titles 4,000 is a good way to start, and of course movies in the mail. This is a great promotion for new and existing subscribers of DISH, check it out at http://bit.ly/qV1sUV

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