A Few (Not Yet Learned) Lessons From Qwikster’s Quick Demise
Can you picture that little boy who reluctantly acknowledges he did something wrong? Head down, eyes on the floor, shuffling his feet behind him, wringing his hands, speaking in a volume so low you can hardly hear him? There is a piece of him that knows he is supposed to feel bad and is trying to be earnest in his apology, and yet, he can’t let go of the idea that he is not really wrong, he’s just misunderstood. This is how my son might approach explaining a broken glass after doing a cartwheel in the living room. Yes, a gIass got broken, but how about that AMAZING athletic prowess? This is also the image I have of Reed Hastings, Netflix CEO, before he hit “SEND” on his latest communication to his customers. He’s reversing his latest plan to spin off his DVD-by-mail business as a new company (Qwikster) so the core brand “Netflix” can focus on its streaming services. This is a good thing, and while clearly it was the consumer backlash that pressured him to back off, I fear that Reed still doesn’t think he did anything wrong. Netflix has been in the “don’t do this” spotlight all year for a series of moves that makes one wonder who exactly is minding the store. It’s not the first company to anger customers with a bold move, but ironically, Netflix had been a brand that was built on doing everything right. When Blockbuster zigged, Netflix zagged. Tired of having to wait weeks for an available copy of the latest release? Plagued by late fees? Yearning for a classic “Young Frankenstein” laugh only to find out the store’s single copy was damaged or MIA? Netflix solved all of these problems. It was convenient. It was cost effective. It was satisfying – just like a classic retail relationship should be.