OK, so clearly they made a mistake. However, how many corporations the size of Netflix will not only NOT admit a mistake, but refuse to do anything about it once it does?
Netflix has always been above board as companies go and this time the mistake was quickly rectified. Once my rotten cable company fixes its horrific service and allows me to resume netflix with streaming video, I'll be the first to buy!
Mr. Hastings, You are a man of honor as CEO's go, now if you could just teach this (and MUCH MORE) to the power company I am about to replace!
i supposed you are being sarcastic.
The ceo is resignation material. He did not want to roll back (had sold his stock already) and when he did it is because he realized the rate of customer flight was impacting the earnings (as we saw yesterday). So he had no choice.
at this point the compnay has no credibility left. and the need a new ceo. If they dont the board will lose credibility too and the co will go down. Simple.
It does not matter how good the product is anymore.
Partly! However the only thing they have going for them is what's left of their customer service, which tends to be better than most. At least my exp with them. (And my co. teaches this for a living, not that that matters, but I do see and hear much WORSE!) But, you're right. Credibility is down the drain. Other Big corp's can learn from their mistakes. Not assume everyones ready fro such drastic, or quick changes and never underestimate the power of the customer. Esp when they come out in the numbers we all did. Last count, 800,000 and climbing. As far as CEO goes, isn't that typical? And NEVER any ramifications (again, I can relate, but I'm not in the same category and a little too left to be so greedy) Just my thoughts on this, but thanks for your input!
"Netflix has always been above board as companies go and this time the mistake was quickly rectified."
No, they claimed their DECISION to raise prices was not communicated properly. That is a LIE. It was communicated PERFECTLY. We all understood what they were doing. Now Mgmt understands.
Netflix = middle man. They have NOTHING proprietary. They OWN no content. Competition is coming. Content providers want a bigger piece of the pie. Margins will fall. Streaming video will be akin to cable TV. Then - meh, who cares.
There's nothing wrong with Netflix as a company. But the valuation model for the share price was wildly unrealistic. Just like the "Old Economy/New Economy" model that created the DotCom bubble back in 2000. The second the assumptions about subscriber growth were exposed as insanely stupid, the bubble burst. It never should have Been $120, let alone $300. So if you bought into that voodoo valuation nonsense (spouted by clowns like Cramer) you're now paying dearly for it.
Agreed.......cramer is an idiot.........who would listen to his stupidity! Go ahead buy, buy, buy! Where is he today when his own "hamburgers" are on sale! He doesn't think ten minutes beyond his recommendation.
If you truly like Netflix and think it's going to be around in ten years and it's now "on sale" you ought to be loading up.
I for one wouldn't touch it and think Cramer an absolute fool.
What are you talking about. Netflix sent out an apology letter that basically said we're sorry about abruptly and radically changing our pricing and service without notice, but it still stands. And we are going to force another crappy idea down your throat named Qwickster. No one would have blinked twice with a one dollar increase. Now netflix should fire the CEO and the board and start fixing this.
I cancled months ago and encouraged other to do the same. Its just not needed anymore.... so many other options out there. We watched maybe 2 times a month and now just find other movies to watch on comcast. Its an end of an inning unfortunatly...
Disclosure I bought at 18 and sold at 22... I knew it was going to go down eventually but never shorted like I should have!