How Netflix Lost Its Glamor and Its Way

John Martellaro:

A shrewder group of executives would have realized that streaming would become the future and never have provided it to DVD renters for free in the first place. If a thing has value, and it costs you money to obtain and deliver, you charge for it. Good CEOs know that. Customers who wanted streaming content would have a choice: pay for streaming or forego it. Instead, Netflix gave away something of value, acclimated the customers to an entitlement, then abruptly shocked them with the real costs. Compare that to Apple TV where, if you want something of value, good content without commercials, you pay for it.

Interesting point. Really does seem like Netflix has lost its way.

★ Wednesday, 21 September 2011