Archives tagged: Netflix

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Spotify and Monetizing What Can be Accessed for Free

By Kyle T. Westra September 11, 2015

At a certain level, the method of accessing a certain music track should be a commodity — it is the track that matters, not the delivery mechanism. Instead of differentiating on price, platforms are trying to do so with exclusive artist agreements and various extras for the consumer, as well as additional marketing support for the artist.

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Netflix Goes to the Pricing and Branding Trough Once Again

By Tim J. Smith, PhD February 5, 2014

In 2011, Netflix’s pricing and branding shuffle enraged customers. After taking a few back steps, Netflix is at it again for 2014. What makes Reed Hastings, CEO of Netflix, Inc. think he will succeed this time, given that customers and shareholders alike ranted hyperbolic disapproval at his earlier moves?

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Redbox Experiments with Price Promotions. Shareholders Recoil from Outerwall.

By Tim J. Smith, PhD October 2, 2013

Outerwall Inc. the owner of the Redbox downgraded their performance guidance tipping off a 13% decline in market capitalization. Did investors overreact? And what caused the poor performance in the first place?

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Why J.C. Penney’s New Strategy Won’t Work

By James T. Berger April 1, 2013

A few months ago I reported on a visit to J.C. Penney and commented on my disappointment with the look and feel of the store. What I saw was CEO Ron Johnson’s new strategy. The basis of this strategy is a return to the roots of the company through its “Fair and Square Every Day” philosophy. The problem with this strategy is that it is, in the words of Wharton Professor George S. Day, an “inside-out” strategy instead of an “outside-in” approach.

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SPIN Selling and Value-Based Pricing – Friends or Foes?

By Tim J. Smith, PhD April 1, 2012

Is pricing out of touch with the market? Are salespeople frittering away profits? Are these two groups really at war with each other? Or, are they aiming for the same goal but language differences are preventing proper teamwork? Let’s review SPIN Selling from a pricing perspective.

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The Resurrection of the Golden Goose

By James T. Berger February 1, 2012

A few months ago, the future of Netflx looked quite bleak after a serious of pricing mistakes and the creation and destruction of a separate company for streaming videos without the mail component. Is there hope yet?

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Killing the Golden Goose – Part 2

By James T. Berger November 3, 2011

Reed Hastings, the CEO of Netflix (NFLX) has cemented his position on my Hall of Shame. Whether hubris (outrageous arrogance) or stupidity, Netflix has taken an ill-advised price increase and transformed it into a runaway train that threatens to jeopardize the company. The story began when Reed Hastings and his management team, after doing apparently no market research, decided to raise their prices by approximately 60 percent. This action was taken amidst a continuous stream of record earnings, customer loyalty and a growing customer base.

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Top 6 – November 2011

By Tim J. Smith, PhD November 3, 2011

“The only profit center is the customer” Peter Drucker Corporations are psychopaths? Pricing errors, specifically price communication errors, are deadly for career…

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Killing the Golden Goose

By James T. Berger October 6, 2011

In a marketing blunder that rivals Coca Cola’s (temporary) abandonment of its original formula in favor of the sweeter “New Coke,” Netflix (NFLX), despite its incredible success and customer affection, decided to raise its prices 60 percent. Stock tumbled 19 percent. One million customers instantly abandoned Netflix. Was this incredible greed, stupidity or just plain ignorance?

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Infographic: How Netflix is Destroying Blockbuster

By Tim J. Smith, PhD March 2, 2011

 

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