10. Company Overview
An American provider of on-demand Internet
streaming media in the United States.
Established in 1997.
In April 2011, over 23.6 million subscribers in the
United States and 26 million worldwide.
By 2011, the total digital revenue for Netflix
reached $1.5 billion.
Source: http://en.wikipedia.org/wiki/Netflix
http://www.imediaconnection.com/article_full.aspx?id=3
0897
11. Issues
Netflix announced it was raising its rates and changing
its service
Customers used Netflix Facebook wall to voice their
unhappiness.
Instead to answer complaints with clear explanations,
Netflix answered ‘Thank you for your feedback’.
Over 11,000 comments left by angry fans went
unanswered.
Without a dedicated social media team, customers
were left feeling ignored and unimportant.
12. Disaster
Instead of addressing
customers concern
They replied a cheerful
comment
Thanking their fans for their
feedbacks
http://www.imediaconnection.com
/printpage/printpage.aspx?id=3089
13. Vague
response
Shown no
http://blog.netflix.com/2011/07/netflix-
introduces-new-plans-and.html
concern
14. Fired back 10 000
comments
Money - minded
Cancel subscriptions
Pages in Facebook like
“Cancel Netflix” etc
23. In July 2011, Netflix (a US streaming and DVD rental
provider) announced a new price structure which would
result in a monthly bill increase of 60 percent for some
customers.
The same day of the announcement, customers
protested through a social media firestorm: users left
nearly 3,000 posts on the Netflix blog and around
10,000 comments on the company’s Facebook page to
accuse Netflix of greediness and to announce that they
would abandon the company’s services.
Eventually in September 2011, Netflix had to revise
its expectations following the price increase, as they
were about to lose one million subscribers more than
foreseen. Following this announcement, Netflix stocks
were down by 15%.
Notas do Editor
Netflix is a subscription-based movie and television show rental service that offers media to subscribers via Internet streaming and via US mail.
They did not addressing the problem, did not make sure of the social media platform to explain why is there a raise in the price plan.