Netflix Quickly Takes Cover with Qwikster

Facing an overwhelming backlash from subscribers, Netflix CEO, Reed Hastings has come forward and apologized for what has probably become the biggest public relations debacle in the history of Netflix.

When Netflix abruptly spilt its DVD-by-mail service and streaming video service into two separate services and effectively increased subscription fees by 60%, many--perhaps millions--of Netflix's subscribers became angry and threatened to close their accounts. Arrogantly, Netflix did little to manage the crisis. Netflix's attitude seemed to be: We are the leader in the video rental business. If you want our services, you will accept delivery however we choose, and you will pay whatever we tell you to pay.

Netflix did not use those exact words, but that is what the public heard. Rightfully so, the subscribers rebelled and began canceling their subscriptions.

Under such pressure, one would assume Netflix might retreat and come up with a plan to assuage consumer anger, but Netflix did not do that. Sure, Reed Hastings/Netflix apologized for being arrogant and communicating poorly, but that is about it. In a further act of arrogance, Netflix has chosen to rename its original DVD-by-mail service and permanently break it off from Netflix (as if that will fool enough people).

The new name is Qwikster. Yes, Qwikster is a cheesy hipster appellation, and this playfully misspelled name is so 1990s. Sure, Qwikster sounds like some shady file-sharing Web site from Romania, but it is actually a repackaging of Netflix's DVD-by-mail business.  (Yes, this probably will fool enough people.)

If you want to be a member of Qwikster, you are going to have to pay for it, and it will show up as a separate charge on your credit card each month. Even if you maintain a Netflix subscription for streaming content, your credit card statement will have a charge for Netflix and another charge for Qwikster.

Adding to the inconvenience for subscribers, Netflix and Qwikster are to function independently. For example, if you review a movie on Qwikster, the review will not appear on your Netflix account, even though you may be paying for both services. Also, if you need to update your credit card information, email address, home address, phone number, or other account information, you will have to do so twice: once on the Netflix site and once on the Qwikster site.

Some consumers may feel more comfortable with paying for two subscriptions when the subscriptions are under different names, but the reality has not changed. Netflix has reduced subscriber benefits and is charging significantly more for significantly less. If making payments under two different company names makes subscribers feel better about it, then so be it.

Netflix Turns a Deaf Ear to the Hearing Impaired

Closed Captioning Symbol

There is a frustrated group of consumers who are not getting proper respect or attention from Netflix: the deaf and hearing impaired. Many Netflix customers with hearing impairments have been urging Netflix to improve resources for finding and viewing closed captioned content.

Apparently, Netflix has not been addressing these concerns with much energy or interest. Deaf people are complaining that Netflix does far too little to allow the deaf to find closed captioned DVDs on Netflix's Web site. Even worse, closed captioning on Netflix's streaming content is inadequate. Surprisingly, some content that has subtitles on DVD does not have the subtitles on streaming. In short, deaf Netflix customers are getting the shaft.

Here's the worst part. Netflix's pricing structure seems to be a bit more friendly toward streaming viewers while discouraging those who wish to rely on DVD-by-mail. Deaf people rely more heavily on DVD content, because DVD content is more likely to include subtitles. Based on complaints from deaf people, Netflix's streaming service is just not an attractive option for those who have hearing impairments and must read dialog.

Let's forget about the social issues and corporate decency here for a second. Maybe it just makes good business sense to serve the needs of groups with special needs like the deaf. Imagine if a company were to accommodate a demographic like the deaf. This could create a very loyal customer set that could provide many years of steady revenue.

Really, how hard could it be? A lot of content already has subtitles. Beyond that, automatic closed captioning technology keeps getting better. Why is this major technology leader, Netflix, not able to better incorporate these services into its streaming content? Maybe Netflix should look at the long-term marketing potential of making their services more accessible and accommodating toward the deaf.