I have been a loyal customer of your movie rental service for a number of years. I have always thought that Netflix was a model of what good customer service could and should be for all businesses. You quickly mail DVDs to me through the U.S. Postal Service. You allow me to go online and organize my queue of movies. With the click of my mouse I can add new movies, rate them, and read what others have to say about them. Since you started offering the streaming option, I have been absolutely delighted. The quality has been great. There's nothing quite like the convenience of being able to watch a movie on demand through my computer.
I also have been impressed with the ways in which your company has approached customer service. You have set new standards in this area. You tell me via email when you've shipped a DVD. You tell me when you have received a DVD I've sent back to you. You happily replace a DVD that gets scratched or cracked in transit with no questions asked. You often check in with me to monitor when my DVDs arrive in the mail and how the quality of the picture was on streaming movies I watched.
On top of all of this, your selection is fantastic. I don't know of any other company that has the number of movies and television shows that you offer for rental. It overwhelms me sometimes when I think about it. Whenever I learn about a classic movie that I've not seen before, I can usually find it through Netflix. I can also find what I would consider obscure films and television shows that no one else bothers to carry in stock or offer. Your library is truly a gift and one of your greatest assets.
In fact, you are my main source of entertainment. I decided a few years ago to dump cable television and get rabbit ears for my TV. I then started watching all kinds of television programs on DVD and streaming through Netflix. Your company has saved me a bunch of money that would have been wasted on cable television as well as spared me from the deplorable customer service provided by Time Warner Cable and Comcast. I felt as if by shunning cable television and embracing Netflix, I was gaining more control and dealing with a company that was reliable and I really respected.
In the last several weeks, I feel obligated to share with you that my respect for your company has decreased. I first received the email notice about the two tiered pricing structure for DVDs and for streaming. I didn't like the price increase and I don't think you did a very good job of explaining why you were making the change. However, I still felt that Netflix was a good deal and that while I thought the price increase was a big jump, I decided to stay with my combination subscription of DVDs and streaming.
This week I received an email from Reed Hastings, Co-Founder and CEO, of Netflix, informing me of a whole new set of changes regarding the splitting up of the DVDs subscription into a new service called Quickster and the streaming service will remain as Netflix. On top of this split, it also means that if I want to keep both subscriptions, the two services will be related to two separate websites. While I've really enjoyed the ease of one integrated Netflix website, now you are making it more difficult for me to receive the full benefits of your entertainment service. I understand that if I rate a movie in Quickster that rating won't translate over to the Netflix website. Also, I will have to check both websites to see what's available on streaming and what is available via DVD only. It feels like this will more difficult than just dealing with one integrated website. All of this would seem to add up to more confusion and less customer satisfaction.
What I've read in articles regarding the changes that you are making is that the future for your business is in streaming entertainment over the Internet. I get that. I understand that Netflix needs to move more and more in that direction. I realize that it is more cost effective for Netflix to stream movies to me than to pay for the postage to mail a DVD to me. This means more profits for your company and ultimately for your shareholders. Who knows, I may be one of the folks who benefits from this future shift as a shareholder through my retirement investments. I'm not really sure about that but I guess it's possible.
However, what I don't really understand at all is the lack of and confusing communication about the nature and rationale for these changes. It feels like you have not listened to your customers at all. In many ways it smacks of a kind of "we know what's best for you" attitude toward your loyal and faithful customers. It feels like you are going the way of Time Warner Cable and Comcast. I find it hard to believe that you didn't do any market testing and gathering of data and anticipated customer responses before you made these changes. That would indeed be poor business practice and demonstrate a true lack of insight.
I guess I just needed to express to you how disappointed I am in all of this. I feel confused and really frustrated. I feel ignored and unvalued. I feel as if you are taking my business for granted.
I know that you might be thinking that I'm overreacting. It's just entertainment after all. However, by it's very definition, enterainment seems like it should be something that is an enjoyable experience for the consumer. I deal with enough change and difficult things at work and in day to day living. I would hope that Netflix could be a dependendable friend to help me escape all of that other stress producing stuff in life even if just for a little while as I watch a movie.
I don't know exactly what I'm going to do yet. I feel like I need to give the new system a chance. While change is hard for all of us, I don't ever want to be opposed to change simply because I don't have a full grasp of all the rationale behind the change. So, for now, you still have my business. I hope that this has just been a glitch in your company's history. I will give you what will now be a third chance.
However, you need to know that you no longer have my complete loyalty as a Netflix customer. You have my business but not my complete trust. In fact, I will be on the lookout for other companies who might offer me the same kind of service without all of the corporate drama. I don't know of any yet, but my guess is that there are creative folks out there who are going to use this time of mass customer defections from your company to create something new that will compete with your service in a way that you have not experienced before. My guess is the coming months are going to be pretty painful for your leadership, your shareholders, and employees.
My hope is that while it may be a very uncomfortable time for Netflix, I hope it will also be a season of listening and learning. Those two things combined could make Netflix even better and open doors to new and exciting possibilities for the future.
I wish you well and hope for the best.
Sincerely,
Kevin Buckley
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