Netflix CEO Reed Hastings brings stock price from the $20’s to $300 in less than 3 years. He must have done something right, all the decision and executions must be sound, until he decided to raise the subscription price 60% over night. Wow, that’s a bold move. The stock price tanked from $300 to $75 in a few months. Netflix has 24 millions subscribers and about 800 thousands canceled the services, to me, it’s only temporary, why? Because they’re mad because Netflix tried to hold them hostage. Why holding them hostage?
I don’t believe Reed Hastings made the bold decision because of anything but “too many iPads, iPhones, smart phones and Android tablets” are being sold (in millions). All these devices are just plain useless without streaming videos, forget about millions of Apps this and apps that, majority of these owners in real life just use them for playing games, watching movies and surfing the Internet, yes read some books too.
Ok, there will be others offer the same streaming movies service in the future, but none has the best dvd services like Netflix. I used Netflix before and I know, their DVD subscription is great, it took 2 days from the day I drop my old one in the mail to the time I get my new one (it took 4 days for BlockBusters to do the same thing, and I tried that too).
I can’t believe people are complaining about the price of the subscription, I believe people want everything for free, streaming movies and DVDs for $10. I remembered I paid $16 just for DVD and Bluray last time. Yes, Reed Hastings is holding them hostage because he believes these portable tablets need the streaming service from someone, Netflix is the best for both streaming and DVD rental at the moment.
For those who believe going to Red Box for $1 rental, it’s only 1 day and you do have to drive to the market (gas money would cost more than $7.99 a month). If you have a great tablet like mine, just rounded up all your nice DVDs, Blurays, transfer them to a portable hard drive and take it with you where ever you go, no need streaming videos then.. 😀