There are other significant market dynamics, e.g., Amazon Prime video and more competitive on-demand offerings from companies such as Verizon
For years Netflix had carefully tested its products in focus groups assembled in the Lord of the Rings conference room in Building A at its Los Gatos (Calif.) headquarters campus or at rented space around the country. Focus groups have been asked about everything from the red color of DVD envelopes to the quality of video streams. This time Hastings skipped the focus group step, missing an opportunity to gauge customers’ potential reactions to separate websites and billing, according to the former employee. (Netflix spokesman Steve Swasey declined comment.) Instead, Hastings and his team relied on data showing that 75 percent of new signups before the price hike preferred streaming.
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The Blockbuster Movie Pass was launched at the beginning of this month and has already become a huge hit with DISH Network subscribers. Adding the pass to my own employee DISH account has opened up so much entertainment for my family and me. We did end up closing down our Netflix account just because we're getting streaming, DVD/Blu-ray exchanges plus we now have the added feature of renting video games. Too bad Netflix didn’t see this coming either.
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