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September 24, 2011 06:43 am GMT
For years, Ive pointed to Netflix as one of the shining examples of the Subscription Economy. But in two painfully long weeks, Netflix has taken a huge misstep, violated the trust of its customers and even opened the door to its supposedly long-vanquished elder, Blockbuster!Few remember this. Netflix started out as DVD by mail, but with the same restrictions as a retail Blockbuster experience (e.g. late fees, etc.). Then Netflix realized something important that changed the company forever. Success wasnt tied to the number of DVDs it shipped. It was the number of customers they had and could hold onto. Rabid customer loyalty was key to its success then and it still is today.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/At0cJOvKXzU/
Netflixs Pain Is Blockbusters Gain
For years, Ive pointed to Netflix as one of the shining examples of the Subscription Economy. But in two painfully long weeks, Netflix has taken a huge misstep, violated the trust of its customers and even opened the door to its supposedly long-vanquished elder, Blockbuster!Few remember this. Netflix started out as DVD by mail, but with the same restrictions as a retail Blockbuster experience (e.g. late fees, etc.). Then Netflix realized something important that changed the company forever. Success wasnt tied to the number of DVDs it shipped. It was the number of customers they had and could hold onto. Rabid customer loyalty was key to its success then and it still is today.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/At0cJOvKXzU/
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