Company Overview An American provider of on-demand Internet streaming media in the United States. Established in 1997. In April 2011, over 23.6 million subscribers in the United States and 26 million worldwide. By 2011, the total digital revenue for Netflix reached $1.5 billion. Source: http://en.wikipedia.org/wiki/Netflix http://www.imediaconnection.com/article_full.aspx?id=3 0897
Issues Netflix announced it was raising its rates and changing its service Customers used Netflix Facebook wall to voice their unhappiness. Instead to answer complaints with clear explanations, Netflix answered ‘Thank you for your feedback’. Over 11,000 comments left by angry fans went unanswered. Without a dedicated social media team, customers were left feeling ignored and unimportant.
Disaster Instead of addressing customers concern They replied a cheerful comment Thanking their fans for their feedbackshttp://www.imediaconnection.com/printpage/printpage.aspx?id=3089
In July 2011, Netflix (a US streaming and DVD rentalprovider) announced a new price structure which wouldresult in a monthly bill increase of 60 percent for somecustomers.The same day of the announcement, customersprotested through a social media firestorm: users leftnearly 3,000 posts on the Netflix blog and around10,000 comments on the company’s Facebook page toaccuse Netflix of greediness and to announce that theywould abandon the company’s services.Eventually in September 2011, Netflix had to reviseits expectations following the price increase, as theywere about to lose one million subscribers more thanforeseen. Following this announcement, Netflix stockswere down by 15%.