NetFlix CEO Sends Mea Culpa Letter To Clients: "I Messed Up. I Owe You An Explanation"

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Mon, 09/19/2011 - 09:15 | 1684108 flyr1710
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so i guess losing 25% of your net worth and the company's market cap in 2 days will make you do this

Mon, 09/19/2011 - 09:21 | 1684127 SheepDog-One
SheepDog-One's picture

Many more bubble bursts coming next.

Mon, 09/19/2011 - 12:59 | 1685167 SamAdams1234
SamAdams1234's picture

Those aren't champagne bubbles in the bathtub!

Mon, 09/19/2011 - 13:13 | 1685226 SamAdams1234
SamAdams1234's picture

Boom .. there is another.

Mon, 09/19/2011 - 09:38 | 1684201 reading
reading's picture

Who said money doesn't buy humility....

 

 

Mon, 09/19/2011 - 10:25 | 1684404 UGrev
UGrev's picture

You could also say it this way: 
"Who says market forces don't work when driven by HUMANS..."  

Mon, 09/19/2011 - 11:59 | 1684908 Buckaroo Banzai
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I love that the left-hand skyscraper banner ad showing on this page is for Netflix.

Mon, 09/19/2011 - 09:19 | 1684124 OnTheWaterfront
OnTheWaterfront's picture

Comcast = xfinity

Netflix = Qickster

Mon, 09/19/2011 - 10:58 | 1684572 Dr Hackenbush
Dr Hackenbush's picture

net nuetrality/data limits = cable subscibers = >comcast monopoly 

Mon, 09/19/2011 - 09:21 | 1684129 knukles
knukles's picture

Where's that dweeb whose been pumping NetFlix all the time?
I need an explination.  All I've been holding are long bonds and PM and been kept awake alll night, every fucking night worrying why I didn't have everything leveraged up to the max and invested in Netflix.

I demand an apology for the angst and agita.

Dot.com 2.0

Mon, 09/19/2011 - 09:21 | 1684132 orangedrinkandchips
orangedrinkandchips's picture

As my old man always said...

 

"DAY LATE, DOLLAR SHORT"

Mon, 09/19/2011 - 09:23 | 1684137 fdisk
fdisk's picture

It's all about timing, so many shorts been burned by NFLX before it's actually dropped like a rock. Everyone was expected since near 50% float was shorts, but the timing is the key. Easy to say now.. I wish I could read charts from left to right instead of right to left.

Mon, 09/19/2011 - 09:26 | 1684160 Whatta
Whatta's picture

I wish I could read charts from left to right instead of right to left.

shit, I wish I had tomorrow's chart today. Then I might be right once in a while.

Mon, 09/19/2011 - 10:35 | 1684455 chrispycrunch
chrispycrunch's picture

You know what they said about the guy who could read the chart left to right? He read his own obituary in the newspaper a day earlier.

Mon, 09/19/2011 - 09:23 | 1684144 Seasmoke
Seasmoke's picture

well that is the Quickster way to Zero .....never saw a company fuck up more than this

Mon, 09/19/2011 - 09:24 | 1684147 buzzsaw99
buzzsaw99's picture

OMG WHAT A DUMBASS!

Mon, 09/19/2011 - 09:24 | 1684148 Whatta
Whatta's picture

its still a good short....

Mon, 09/19/2011 - 09:27 | 1684162 Cognitive Dissonance
Cognitive Dissonance's picture

Yup, I found my "Dear John" Netflix letter in my in-box this morning as well. It gave me the warm and fuzzys. Then I realized I needed to change my Depends.

Mon, 09/19/2011 - 10:02 | 1684315 mahalopamala
mahalopamala's picture

Me too- I mean about the letter- no adult diapers here.  It is funny to me that a letter was even written.  Oh, that's right- since many folks are ignorant of the fact that our money is basically worthless and the fact that businesses are tanking everywhere- so many were shocked that netflix changed their pricing structure that the wise and powerful marketing/ PR department (aka Bernays boys) nudged CEO to come to the customers all "hat in hand".  I could care less.

I still look forward to the envelope in the mail. I get to watch what I want, classics, and shows of substance- not all the drivel on the networks. If they tank, no problem.  I have lots of friends that have extensive collections on DVD.  I also own thousands of books- so who cares.  Entertainment is not something you can purchase- it comes from within.

Mon, 09/19/2011 - 09:28 | 1684166 snowball777
snowball777's picture

AOL and Borders....perfect models to emulate,  if what you want is to go BK.

lulz

 

 

Mon, 09/19/2011 - 09:30 | 1684172 Careless Whisper
Careless Whisper's picture

Hey I got an idea, let's change the formula for Coca-Cola.

 

Mon, 09/19/2011 - 09:34 | 1684182 stuman
stuman's picture

I wasn't surprised by the price adjustment, streaming has increased an incredible amount, the  cost to Netflix has got to be huge for that lvl of bandwidth nationwide.

Not sure why all the hoopla, the original release on the changes made sense to me at the time and still does.

I personally don't stream and only do 3 dvds at a time, my cost went down. But if I chose to stream I certainly understand the cost involved.

But agree, the name change/division doesn't seem like the best of moves...  

Mon, 09/19/2011 - 09:36 | 1684189 for shizzle my ...
for shizzle my nizzle's picture

I thought "Quickster" was The Stool of Omaha's pet name for Becky Quick..........

Mon, 09/19/2011 - 09:39 | 1684193 fdisk
fdisk's picture

GOLD pushing down again. That wasn't the case lately when Markets are down 170 points, strange.  Amazing with all these events, Gold turning RED.

Mon, 09/19/2011 - 09:47 | 1684254 WonderDawg
WonderDawg's picture

If deflation is indeed in the cards, expect all asset classes to decline pretty much in unison.

Mon, 09/19/2011 - 10:08 | 1684339 ww2vet
ww2vet's picture

gold fails and fails-1500 before 2000-zh fools!

Mon, 09/19/2011 - 11:26 | 1684747 OldTrooper
OldTrooper's picture

Let's hope so...then I can buy substantially more.

Mon, 09/19/2011 - 09:40 | 1684218 FLUSA.com
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I am a member and I didn't get this email.....I have to get it on zerohedge.....I know they have my email.....BECAUSE IT IS HOW I SIGN IN.....but I digress....

Mon, 09/19/2011 - 11:24 | 1684734 haskelslocal
haskelslocal's picture

Makes you wonder about the authenticity of the article. It is the internet afterall and even ZH can fall prey to a bogus ploy or two...

Mon, 09/19/2011 - 09:49 | 1684269 Janice
Janice's picture

I quit Netflix when I found out that Canadians were getting a cheaper rate than the US citizens. I actually liked Netflix because I could keep movies in queue and I didn't forget about movies that I wanted to see. However, the CEO was so smug about the price disparity that I opted out. I read an article where he basically said, "Yeah, we charge Canada less, get over it." We watch less movies, but I just felt that the CEO was too good for my little pennies.

Mon, 09/19/2011 - 09:55 | 1684295 spanish inquisition
spanish inquisition's picture

"To make up for the loss in confidence, we are going to print more stock to increase liquidity in the market. We have also opened up stock swap lines with LinkedIn and Facebook to ensure price stability."

Mon, 09/19/2011 - 09:59 | 1684297 edwardscpa
edwardscpa's picture

Quikster - what a stupid name.  And splitting the two services?  Integration was one of the cool things about Netflix.  Somebody needs to fire this guy and hire a new guy who says - forget all that, let's turn back the clock and carry on.  Now about that 100x PE...

Oh yeah, I quit Netflix when Verizon jacked up the prices of their Phone/Internet combo plans to the point where it was about the same price to get Phone/Internet/TV.  Now I have movie channels, DVR, On-Demand, cable, etc. at much better quality.  This is a no-brainer trade; if you control the pipe, as Comcast and Verizon do, you can pretty easily shut down Netflix w/ your pricing schemes as I described.

Mon, 09/19/2011 - 15:47 | 1685822 Dr. Eldon Tyrell
Dr. Eldon Tyrell's picture

Reed went Full Retard.

 

Should have at least tried to get a name like "QWIKflix" and contrast that with "NETflix" so people could differentiate the services a little better.

Either way, lame move.  I've adjusted my subscription behavior everytime they jacked with the terms/rates.

 

http://vimeo.com/3945205

 

 

Mon, 09/19/2011 - 09:57 | 1684301 Moe Howard
Moe Howard's picture

Netflix made a boo-boo comparing his company to AOL and dial up. 

He is failing the same way. At least they are divorcing the two halves.

Mail DVDs are soon to fail along with the Post Office.

Streaming will fail as Netfixx has to start paying for bandwidth [the last 1/4 mile].

He is riding on ISPs - ISPs are the natural providers of streaming video, not a third party. 

My 3 cents.

Mon, 09/19/2011 - 10:00 | 1684309 drunkagain
drunkagain's picture

way to reduce the brand value of your name.

i'd guess that alot of people who watch streamed netlix movies may have migrated from the DVD service; no longer....

now with seperated billing and accounts , they have increased the switching cost/hassle leveling the playing field with their other streaming competitors for those looking for streaming service (which is the future of this biz)...l'm going to try shorting the spike and this is another poor strategy idea and hopefully another third strike is coming.

Mon, 09/19/2011 - 16:06 | 1685943 Dr. Eldon Tyrell
Dr. Eldon Tyrell's picture

Actually,

 

The opposite may be true...you'd be amazed at some of the ripping/encoding/media playback solutions out there.

Current streaming titles are pretty poor and there are still a lot of good titles still only available on DVD.

Yeah, not everyone is gonna bother with ripping/encoding/media playback...but its a nice way to create a buffer of movies to watch while
still keeping the stream of DVD's to the mailbox at a reasonable rate.

I suspect Reed's next trick will involve...having new movie exclusives only available via streaming before the second
class Quickster citizens get access to them. 

Mon, 09/19/2011 - 10:04 | 1684329 Infinite QE
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Phase two: spin off Quickster, ipo it and collect millions in management fees.

Mon, 09/19/2011 - 11:57 | 1684896 Buckaroo Banzai
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Brilliant. I think we have a winning idea here.

Mon, 09/19/2011 - 10:05 | 1684332 Fix It Again Timmy
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Why watch movies when you can read Zero Hedge?

Mon, 09/19/2011 - 12:13 | 1684963 Jena
Jena's picture

Why watch movies when you can read Zero Hedge?

 

Occasionally I like to escape via fiction.

Mon, 09/19/2011 - 10:41 | 1684498 Ruffcut
Ruffcut's picture

The puts re very pricey. I like the steaming, but selction for b movies is weak.

I can't figure why cable companies don't charge less than 3 bucks for on demand movies and crush these fuckers. The premium channels are probably scrambling their shit models, too.

Then again 8 bucks for streaming is pretty cheap. THe comedy is better than cnbs, too.

Mon, 09/19/2011 - 14:49 | 1685594 tamboo
tamboo's picture

fantastic selection of b movies:

http://cinemageddon.net/

Mon, 09/19/2011 - 10:44 | 1684509 artx00
artx00's picture

they eliminated competition and thought they were monopoly. Thce cancellations reminded them they are not a monopoly

Mon, 09/19/2011 - 11:26 | 1684704 haskelslocal
haskelslocal's picture

Quikster has got to be the worst name change/creation in history and I'm sure it will play out that way on profits. This CEO doesn't think it's already confusing and now there's going to be a new website that comically isn't even ready yet? Gawd.... 

Mon, 09/19/2011 - 16:14 | 1685979 Dr. Eldon Tyrell
Dr. Eldon Tyrell's picture

Probably didn't want to pay for a name that makes sense like QWIKflix or MAILflix versus NETflix.

At least you could differentiate the services with names like that.

 

 

Mon, 09/19/2011 - 11:23 | 1684729 upWising
upWising's picture

Qwikster .. so changing the name is going to  make it all warm and snuggly.  A new logo will solve all problems.

Qwikster .. should be called DUMPSTER.  I think that's what most people will do..

ALCOHOL, TELEVISION, FAITH IN THE SYSTEM.

Mon, 09/19/2011 - 11:24 | 1684730 upWising
upWising's picture

Qwikster .. so changing the name is going to  make it all warm and snuggly.  A new logo will solve all problems.

Qwikster .. should be called DUMPSTER.  I think that's what most people will do..

ALCOHOL, TELEVISION, FAITH IN THE SYSTEM.

Mon, 09/19/2011 - 11:26 | 1684745 ElTerco
ElTerco's picture

Wow.  This guy clearly doesn't understand the point of branding.  It's one thing to mess up the first time with the pricing, and quite another to mess up so badly right afterwards by destroying the reputation the brand has built  and introduce confusion into the product being offered.  He took a quickly growing company, and turned it into a disaster area almost overnight.  Hopefully, the board will let him go immediately.  If not, it just proves how corrupt US corporations have become at the top.

Mon, 09/19/2011 - 11:32 | 1684780 Uncle Remus
Uncle Remus's picture

Well, that reeks of desperation.

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