Netflix chose a bad time to raise prices and roll out a new delivery service when competition from Amazon and Dish networks is growing.
The new DVD only service Qwikster would have required users of both services to have separate accounts, which prompted lots of customer complaints.
“It could be three to six months, and in the meantime there’s a lot more competition,” investor David Miller says about customers coming back to Netflix. “You can’t fix that in one quarter.”
“When they split the company, they did it in such a way that nobody understood precisely how it was going to work, and that confusion led to a degradation in terms of the brand,” Robert Passikoff, founder and CEO of branding and research company Brand Keys says.
“At the end of the day, though, the selection is still the best on Netflix,” Miller says. “There’s no one that matches this kind of selection,” he says.