The announcement recently that Netflix has changed the functionality of its Website to, in essence, encourage users to select streaming video options for their movie viewing rather than receive DVDs through the mail did not come without its detractors. In fact, judging from this article, the move (even if it came on MLK day) was far from subtle and threatens to have major repercussions on Netlix’s core DVD business. While it’s a business decision that Netflix must make to compete moving ahead, it is a move that by definition will cause problems. For a company built on the promise on quick and easy (and free) DVD rentals through the mail, a veer in course away from this method of service is sure to cause problems. It’s something to keep an eye on. How does a company change its audiences’ buying habits to change with technology? It’s a challenge that’s bound to cause some hiccups.
From a crisis communications perspective, it’s important to be clear and responsive. And in the age of social media, this means tracking blogs, monitoring feedback and responding to complaints and assessing the damage. Netflix’s customer loyalty is tops for a reason and it wouldn’t be moving away from DVD rentals without just cause. But it’s an important case study nonetheless. How will one of the tech darlings of the 2000s fare after a major business model push. My guess… they’ll do just fine.



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[...] is a trend that will only quicken in the coming years. As we pointed out in January, Netflix is moving its model away from mail order DVDs and toward streaming video and the selection on Netflix is growing by the day. With costs from cable providers out of line with [...]