Netflix is not infallible… (a cautionary tale for video streamers)

This week, Netflix (NFLX) reported that it lost 100,000 subscribers (in the United States) instead of gaining the 300,000 in the second quarter that Wall Street anticipated. The reaction to the news was swift and brutal as the stock took a 10% nosedive. In the days since the announcement, Netflix has been sending out “positive” advisories about their commitment to creating “value” for subscribers and stockholders. Some analysts on Wall Street do not see those lost subscribers coming back anytime soon. Very simply, many subscribers felt betrayed by the recent across the board price increase (Netflix’s 8th price increase since 2007).

Sometimes you need an ass kicking to get the message… but hopefully Netflix has learned some important lessons in the past few days that we in the music business have known for over 20 years:

• Price matters. Netflix’s May 2019 price increase was a total disaster. Badly marketed and seemingly done as a reaction, they raised their basic service a $1 and $2 for the “premium” service. It doesn’t help that so many new platforms are going on-line very, very soon and have done a good job getting their audiences excited (Disney). Apple (AAPL) has said that its new Apple TV+ service will be “free” for a time. We’ll see…
• No one can dominate or monopolize in a…