Netflix is the new loser

MoonHowler

Several months ago Netflix users got an abrupt surprise.  They were told the rates were going up and that there would be a separate charge for streaming video vs DVD.  There was much grumbling and grousing and cancelling of plans.  In fact, the stock dropped more than 40% since the announcement was made.  Today, the formerly $300 per share stock is now $150.  Most people aren’t even tempted. 

The following email was sent today, from the CEO, Ralph Hastings:

 Dear XXXXXXX


I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.Read More

Something new to kill us

MoonHowler

If you survived the earthquake, Hurricane Irene, Tropical Storm Lee, and all the flooding, there is another chance to defy the odds.  It seems that now a man-made satellite the size of a school bus will come crashing to earth.  Scientists are unsure of the exact location. 

According to the Washington Post:

It’s the Upper Atmosphere Research Satellite, or UARS — YOU-arz — and it’s currently tumbling in orbit and succumbing to Earth’s gravity. It will crash to the surface Friday.

Or maybe Thursday. Or Saturday.

Out-of-control crashing satellites don’t lend themselves to exact estimates even for the precision-minded folks at NASA. The uncertainty about the “when” makes the “where” all the trickier, because a small change in the timing of the reentry translates into thousands of miles of difference in the crash site.

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