Netflix finally reacts to consumer backlash – but is it just putting on a new coat on its services?

Mashable: Netflix Apologizes to Customers & Rebrands Its DVD Service.

Netflix finally reacts to the mess they created when they announced that their DVD customers were getting shafted a 60% price hike.

Netflix CEO Reed Hastings admits that he did a ‘Sony’ (see the brouhaha created when Sony announced the launch price of the PS3) – “In hindsight, I slid into arrogrance based on past success”.

The consumers reacted to Hasting’s original announcement of the price hike rather predictably, by bringing their custom someplace else. Netflix had to cut its customer forecast by 1 million thanks to that mistake.

I think that consumers have been burned by this and are unlikely to turn back unless Netflix does something more than just apologise and rebrand while maintaing the same pricing structure that so alienated its customers in the first place.


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