Direct Line Blog

The Netflix Dilemma

Share this article:
Kotex's awesome Pinterest campaign
Kotex's awesome Pinterest campaign

I use Netflix all the time, mostly to re-watch shows I can't seem to get enough of and discover new favorites. (Parks and Recreation, anyone?) Which is why it's really kind of sad that, from a business perspective, my beloved Netflix can't seem to get their act together.

Netflix announced its earnings yesterday, and the numbers were a little grim. Netflix stock was down a whopping 14% today. Future customer growth projections don't look so great either.

This leaves me wondering what's coming next for the once-super-innovative movie delivery company. They made a big step forward a couple of months ago (in my opinion at least) when they announced that they would be bringing back Netflix-exclusive new episodes of Arrested Development, a now cult favorite that struggled to gain ratings when it was on the air. If there was ever a reason to keep Netflix, this was a huge one for me.

What's yet to be seen is if Netflix will start hosting more of its own content, akin to what a television channel does, or if it will try to become a more robust service, like cable. These days, it's caught somewhere in the middle. And that's a problem.

It's no secret that, last summer, Netflix botched its marketing of online streaming, breaking it out into a separate service many customers felt should be combined with their previous direct mailing service—DVDs, straight to your door.

I should clarify that I'm a relatively new adopter of the technology, which may explain why I have a mostly positive experience with the company. I signed on with Netflix in November, and have enjoyed their streaming service immensely. My only complaint thus far is that I'm a huge Woody Allen fan, and all of his movies, last I checked, were by-mail only. I simply refuse to pay extra for the service. Why can't they be streamed, too?

I remember thinking that this cartoon from the Oatmeal put Netflix's unorthodox business approach (Qwikster, which they abandoned in October) rather perfectly. And any marketer will tell you that consistently misreading customer desires can spell doom for a company.  Some other bloggers on our site have been very critical, too.

Best of luck, Netflix. I hope, come this time next year, I won't have to search for my (almost) daily Arrested Development fix elsewhere.

Share this article:

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:

Company of the week

Concerned about growth? With over 25 years experience in the industry, the list experts at Fairfield Marketing Group possess the know-how to help immediately improve any domestic or international direct marketing effort. First-time and well-established mailers can rely on Fairfield Marketing Group's expertise to help launch campaigns into positive and profitable ventures.

Find out more here »

More in Direct Line Blog

In a World of Technological Novelty, Execution Prevails

In a World of Technological Novelty, Execution Prevails

A successful business and marketing strategy needn't rely on unique ideas so much as exceptional execution of any idea, a marketing expert says.

Is 5-Day Delivery USPS's Way of Saying It's Giving Up on Mail?

Is 5-Day Delivery USPS's Way of Saying It's ...

The head of the PRC and a noted union leader think so. They wonder why such an exclusive business isn't 24/7 instead.

Président Replaces Cheesy TV Spots with Digital

Président Replaces Cheesy TV Spots with Digital

Marketing + Cheese: What more could you want?