Posted on September 20, 2011
Just last month Columbia Business School professor, Jonathan Knee wrote in Atlantic Magazine.
“Netflix…engenders fierce (customer) loyalty…even beating-out reigning champion Apple, among 528 other brands…Most observers expect the company to have over 30 million subscribers by the end of the year. Netflix is the rare aggregator…which (excels) in customer service and (product perfection) by harnessing customer feedback.”
Since Knee’s month-old accolades, Netflix management announced (1) a 50% reduction in projected third quarter subscriber growth, (2) an apology for prompting a million customers to abandon the service in response to price changes, and (3) a formal division of company’s services into (a) streamed video and (b) postal delivered DVDs. Read more…
Posted on September 1, 2011
Last week market researcher GigaOm critiqued the CATV industry with an article entitled “Forget TV, broadband is the future of cable.” Apparently their analyst was prompted by what he termed a “surprise” comment from Time-Warner Cable’s CEO that “broadband was becoming the company’s anchor service.” The analyst then proceeded to explain that profit margins were higher in broadband and it’s really the prime service consumers want anyway.
Such conclusions fail to be news for Inside Digital Media subscribers since we provided much the same analysis in our December 5, 2009 podcast/post entitled “Cable Operators Will Abandon TV.” That’s nearly two years before GigaOm.