In January 2021, Netflix’s price hike came as a shock to its many users. It was mainly because of Netflix’s content library increasing daily but there is more to it than that. The story of Netflix’s mistake was that they had bundled their online DVD rental service with the streaming service and hiked the price. Users of the 21st century retaliated and did not like this bundle with a service that rarely is used.
Later, Netflix issued an apology and announced a separate plan for the streaming service and another for the DVD rental service called Qwikster. What should have been a new release, turned out to be more painful for the company. On Monday morning, thousands of people complained about the service and planned to leave Netflix. That very day, Netflix’s stock value plummeted like crazy.
Although we love the service for its incredible streaming feature, there is a lesson to be learned in this scenario. As a streamer or a business owner, the mistakes cost Netflix a lot and they should swear on not repeating them. To understand the situation, we will highlight the 5 important lessons from Netflix’s big mistakes.
A no-brainer pick required brains now
Netflix was once a no-brainer pick. It was convenient just the way it was with steady new releases, great new features, and no jumpy changes……until there came a very jumpy change. With the launch of Qwikster, the users freaked out about the sudden change that instantly kicked in.
The basics of launching something new is to hint at it and give users some time to get used to the new change. A deadline of change would’ve been nice and would’ve prepared the users beforehand.
A ‘value for money proposition got violated
Netflix did not just raise their prices but also separated the pricing for DVD rentals and streaming services. In a world where people crave bundle deals, discounts, and offers, this was a step in the wrong direction.
The initial proposition should have given viewers some time to determine whether it is good value for money or not. The division of price should have been backed by incentives which it was not.
A ‘no social media presence’ launch
This was typically a dummy mistake, not a rookie mistake. We’ve seen startup founders not make such a mistake since they crave to be showing off on social media first. What happened was when Qwikster was launched, many users tried to look it up on social media. To their surprise, they found a random user on Twitter who had this name picked for his account years ago. The result was that he got all the attention for a mistake Netflix should’ve fixed first.
The golden rule before a major launch is to have a dedicated social media presence on all major platforms. People seek these options out as information hubs and therefore carry the most important in any business.
A ‘not-so-relevant’ name
This is business 101 to have a name that is supposedly relevant to your purpose. By the name ‘Qwikster’, it only hints at being fast in speed. But if you’re looking for a DVD rental service or streaming service, speed is an important thing but the most important thing. In a name, you highlight the business’s main proposition. It furthers the business’s unique selling point and helps in reducing confusion.
Netflix sounds like a mixture of “Internet” and “flicks” which makes it a great name. We only wish the same level of creativity and effort was put into naming Qwikster.
A ‘complicated system’ in place
Amidst all these weird changes, Netflix had to go ahead and complicate their existing system. The new system dictated customers to visit two different websites to access both the services. They also had different billing, reviews, and ratings. Instead of unifying the purpose, separating the two can create massive complications. Not only are they asking for more money, but they are compromising accessibility.
If you plan to raise prices, so should your values and services. Reducing accessibility is a big step back and it would only hinder your progress in the real world.
Ever since these 5 mistakes, Netflix has learned to surpass them and continue to win hearts. After seeing the new features, new interface, and new settings, we are convinced of any new price hikes that might happen. Netflix has now evolved more in the streaming and production world than ever before.
Netflix updates are consistently making the experience better, and they continuously request feedback to keep changing for the better. Netflix is stepping into 2022 on a bolder note with some new adjustments and changes.
Netflix recently announced a feature of playing games. You can use the streaming service to play games like Shooting Hoops, Teeter (Up), Stranger Things: 1984, Bowling Ballers, and many more. Their attempt at disrupting the gaming world is an example of them diversifying towards newer avenues. Not only is it thriving as an incredible streaming service but now it is bringing new directors, amazing actors, and their social media is a testimonial of what more they are about to achieve.