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The Resurrection of the Golden Goose

February 2012 Marketing 1 Comment

A few months ago, the future of Netflx looked quite bleak after a serious of pricing mistakes and the creation and destruction of a separate company for streaming videos without the mail component.

 To the credit of Netflix and its CEO Reed Hastings, Netflix has made a recovery, but more important, the company has articulated a sensible business model.   In 4th quarter 2011 it added 610,000 U.S. subscribers thus reversing the abandonment of the service by more than that number of customers in the wake of its pricing problems.   It’s subscriber total is still under its peak 24.59 million, which it achieved in 2nd quarter 2011.  It also recorded a dip in profits, which it attributed to international expansion costs.  But, clearly the company is on the road back.

 More importantly, Netflix has figured out that mail service does not represent  the company’s future.   Instead it intends to concentrated on its streaming services and seeks to evolve into an online competitor of cable networks.   It seeks to diversify overseas and added 380,000 international subscribers in 4th quarter 2011.

 Clearly, Netflix seems headed on the road back.



  • Elmagk

    It is a great aecmmplishocnt for Netflix. Not easy for Netflix to alignment so many partners in the customer electronic device industry to create cross branded feature. Now Netflix logo will be a matter of recognition instead of recall. Netflix is staying ahead in the video stream race with Apple, Amazon, and Disney.

About the author

James T. Berger, Managing Editor of The Wiglaf Journal, through his Northbrook-based firm, James T. Berger/Market Strategies, offers a broad range of marketing communications, research and strategic planning consulting services. In addition, he provides expert services to intellectual property attorneys in the area of trademark infringement litigation. An adjunct professor of marketing at Roosevelt University, he previously has taught at Northwestern University, DePaul University, University of Illinois at Chicago and The Lake Forest Graduate School of Management. He holds degrees from the University of Michigan (BA), Northwestern University (MS) and the University of Chicago (MBA). Berger is an often-published free lance business writer who has developed more than 100 published articles in the last eight years. For more information, visit www.jamesberger.net or telephone him at (847) 328-9633.

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