Treating Americans as nothing more than piles of money has consequences

Posted on: October 24th, 2011 by ecthompson md No Comments

Americans can take abuse. You can push us around and you can talk badly about us… for a while. Wall Street darling Netflix was raking in money hand over fist. Who would've thought that sending DVDs through the mail could be really, really profitable? Well, the guys at Netflix figured this out. They were on Easy Street. They'd figured out a model for delivering movie content to Americans through multiple different ways – DVDs through the mail, direct download to your TV or direct download to your computer. They had an extremely sweet set-up. Then, during the middle of a recession, they decided to raise prices significantly. They forgot their own business model. They forgot that they were delivering movies to Americans cheaply and easily. Without regard to the cheapness, Americans can go and rent a movie at any number of locations or even buy the movie, at a pretty cheap price. Americans were not happy. We spoke loudly and clearly by canceling subscriptions to Netflix – left and right. The reaction was so swift and sudden that we saw something in the United States that we haven't seen for decades – a CEO actually apologizing to the American people. It may be too little, too late. (I bet you the board will fire him.)

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