If Netflix's poorly received rate hike and Qwikster fiasco didn't leave you questioning CEO Reed Hastings' ability to lead the video buffet operator, Monday night's quarterly report should do the trick. But it'll take more than strategic missteps and fumbled apologies to send the CEO packing.
The Qwikster jokes are already old, and it's back to business as usual for video buffet operator Netflix -- or is it? Its stock prices are low, and there are lingering questions. But Netflix can make it right with the public again, starting with cleaning up these three big messes it recently made.
The boneheaded move of the week was committed by financial journalists, who collectively decided to blame Netflix's recent price hike for its reduction in subscriber targets -- a bad call indeed. Other head-scratchers included the end of boastful Fidelity Magellan chief Harry Lange's tenure, Cracker Barrel's attempts to evade Biglari Holdings, and Restoration Hardware's IPO.
In an open apology to Netflix customers, CEO Reed Hastings took the blame for the price hikes and service changes that generated such negative reactions. He also announced that Netflix was splitting its DVD-by-mail business off under a new name: Qwikster.
The Netflix Goliath was seriously weakened this week when Starz said it will pull its content from the company's streaming feed in February: Is it time for the industry Davids such as Redbox, Blockbuster and Amazon to pull out their slingshots?
Focusing on cash flow -- instead of the figures Wall Street is so fond of -- is a good way to measure a company's strength. That said, just like revenue and earnings, cash flow can be manipulated in order to hoodwink investors. Look out for these four signs that a company's pulling a fast one with cash flow.
Online retailing is big business, and growing. As virtual storefronts become major revenue generators, many retailers are realizing the value of free shipping, which has the potential to greatly increase sales. Consider these seven promotional strategies, good for consumers and investors.
Wall Street can be fickle, leaving investors scratching their heads in bewilderment. Some of last week's biggest surprises, blunders, and flat-out boneheaded moves included Netflix's misguided pricing hike, ill-timed IPO announcements by Norwegian Cruise Lines and Zillow, and Trex going the way of Lumber Liquidators.
Netflix's massive rate hike plan represents a 60% increase for some of its customers -- a giant step up by any standard. And the unspoken cost is, of course, the price of broadband Internet service customers also pay, likely on top of a cable bill, cellphone bill and other media subscriptions. In the end, how much media - and how many subscriptions - do we really need? Even as the offerings around us increase, there are still only 24 hours in a day.
Netflix sent shockwaves through the living room yesterday after revealing that it will separate its mail-served discs and streaming service into two distinct pricing plans. And while the initial reaction by many subscribers has been outrage, there's really no need to panic. Here are some myths and misconceptions creating undue concern about Netflix's new deal.
