Few CEOs in recent years have fallen so far and so fast in the public’s eye as Netflix’s Reed Hastings. Before this summer, the man could seemingly do no wrong. Since then, there’s been a lot of wrong. In remarks at the UBS Media conference in New York today, Hastings uttered a mea culpa and also gave a peek into his stumbling company’s plans for the future.
Hastings said the following about Netflix’s actions in 2011:
“We did so many difficult things this year that we got overconfident . . . Our big obsession for the year was streaming, the idea that ‘let’s not die with DVDs.'”
Regarding the hastily announced and even more hastily aborted Qwikster DVD spinoff, Hastings said:
“We moved too fast with it . . . We berate ourselves tremendously.”
Despite the sting from the recent Qwikster debacle, Hastings still feels that his company is right to bet on the streaming horse:
“Streaming is the future; we’re focused on it . . . DVD is going to do whatever it’s going to do. We don’t want to hurt it, but we’re not putting much time or energy into it.”
Are Hastings’ priorities in the right place? Has Netflix really learned from its “overconfidence” in 2011?
(via CNN)
Timing is everything! ;)
They didn’t get ‘overconfident’. They got ‘greedy’ and the American public didn’t go along with it. They continue to lose customers and have lost nearly $240 from their stock price. If that didn’t teach them anything, nothing well. This CEO has got to go, I’m not understanding why the major investors hvaen’t requested his resignation.
Absolutely 100% correct.
Some of what they stated is correct. I’m sure in the rental market streaming will end up being king. But they were already hitched to that horse and doing quite well with it. The fact that I could get streaming (with it’s limited selection but instant gratification) and DVDs (with it’s extensive selection but limited usage due to the delivery time) for one reasonable price was just great. But jacking that price up by 60% was just plain insane. I’m still, reluctantly, a customer on the streaming side simply because I don’t have cable/satellite and nobody else has streaming at the level of Netflix. If somebody else got to that level (including, and probably most importantly, all the devices supported by Netflix), I’d switch pretty quickly out of simple mistrust that I won’t get screwed again.
I used to love Netflix and recommend it frequently. Now I hate even admitting I’m still a customer.
Not sure I missed that quote! If they’re “not putting much time or energy into” DVDs, then why did they hike the price so much on it. If anything, having DVDs be a $2/mo addon to the streaming side reflected that attitude a lot more than charging $8/mo for it!
Re: Netflix, the arrogant stream of greed!
I concur w/the remarks of tinybrat. While Netflix’s sheer arrogance (overconfidence) is, in part, the reason for NetFlix’s sudden spike in consumer/revenue loss. Also, I am inclined to believe that good old fashion “GREED” was and is the true motive behind Netflix’s arrogant decision to slap their consumers w/hefty price hikes.
Note: expedited, but not proofread, for quick posting.
Ray Charles, Helen Keller, Stevie Wonder, Andrea Bocelli and Ronnie Milsap can see that!