Netflix’s announcement about their new pricing policy generated a storm of consumer comments – almost all negative.  There was a major price increase for service that consumers had been receiving.  Providing a choice to separate the mail and streaming services was fine but the major increase in price was not popular.

Today Netflix sent an email to consumers about their most current business decision to completely separate the services and rename the mail service.  Netflix started with the mail service, consumers have been receiving those red envelopes in the mail with the Netflix name and that is the part of the company to get a new name – Qwikster.  Why rename the brand that built the company?  Netflix’s rationale is that you get the DVDs in the mail quickly.

If you stream a video don’t you get it quicker?  Why rename the brand that established you?  Probably because it is no longer as important to Netflix and they see digital streaming as their future.

Netflix’s letter to consumers was all about the company and the company’s reason for separating the two.  The price issues was not addressed except to say (we are finished with that).

So the company founded on the opportunity to fulfill a consumer need and a company that skyrocketed to success by fulfilling this company need in an efficient and convenient way has ignored consumer needs in their price change and in this current letter to consumers.  The price change and division is all about the company and not about the consumer.

My prediction?  This is a great move for their competitors.  I tried called Netflix this morning and there was a 26 minute wait to get through.  Their Facebook entry about this change already had 1400+ posts. Loyal consumers are no longer happy with Netflix.  The consumers are taking time to express their displeasure because they have liked Netflix and would like to stay with Netflix.  If they did not like the company they would not bother expressing their concern.  If Netflix does not respond appropriately it does not make any difference what their new business model is because they will lose the majority of their customer base.