Wednesday, June 30, 2010

Netflix is Ruining its Great Reputation

I have always admired Netflix. Who wouldn't? Here is a company that was created by Reed Hastings because he had a $40 late fee at Blockbuster. He created a company with a unique customer algorithm, similar to that used by Amazon, that matches customer preferences, and with the ability to source materials for the most niche of movie interests. At the same time, Blockbuster was focused on major hits and keeping an inventory in its many stores.

Netflix was able to see the future and adapt to video-on-demand and downloadable movies, even doing deals with video game makers and DVD player makers.

All of this was admirable. I use Netflix as a case study in my MBA and Executive MBA classes. Now, Netflix has decided that it makes sense to move into pop-up ads on websites. Instead of keeping awareness high, they are becoming a nuisance. Instead of remaining an admired brand, they are ruining their reputation. They are becoming the equivalent of being stuck in a room with a life insurance salesman who just won't stop talking.

I don't know who is advising Netflix, but I wish they would step back and remind themselves of what made them such a valuable brand and return to their roots. Stop the interruption, pop-up ads. Those are for lesser companies.

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