Monday, September 19, 2011

Hey Netflix's Reed Hastings: Your Skin's Hanging Off Your Bones

Reed Hastings, co-founder and CEO of Netflix, came out with this big mea culpa on Netflix's blog and in text messages for raising prices, apologizing for being the arrogant, greedy bastards they are (wow, 20-20 hindsight, huh, Reed?)

What an example of damage control, huh? Take a look.  

And if you believe that, as they say I've got a bridge I'd like to sell you. What you are looking at is the product of hours and hours of meetings and conference calls and emails and a helluva lot of money in costs--probably more money than many of us will make in ten years--to PR agencies and corporate communication professionals. The whole tone and premise is we want to show our human side, when all along we can see it Reed: You're skin's hanging off your bones. What you're seeing is an alien life form trying to act human.

Netflix is just one snake in a nest of snakes comprising the home entertainment business. We know the entertainment business is cutthroat, and these third-tier providers are the true bottom feeders. Netflix's business was taking in water everywhere. It wasn't just customers jumping ship. It's own "partners"--which is a business term akin to a Facebook "friend"--trying to take them for whatever they can. This business is just a passle of jackals.

"Two weeks ago, negotiations between Netflix and Starz, the premium pay-TV provider, broke down. Starz owns the Internet rights to titles from Sony and Disney, so it is an important source of films and TV shows for Netflix. But Starz is reportedly asking for a $300 million deal, or 10 times the $30 million agreement it penned in 2008 and Netflix doesn’t want to pay." Here's the source of that quote.

Netflix, partially through its own doing and partially because of the Darwinian law that rules the business, was the wounded antelope on the Serengeti, with the lions closing in. Netflix's last option was to actually try to appear human and appeal for mercy from people who don't have a clue about the true nature of the game.

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