Re-post: This article first appeared March 3, 2006. As home entertainment evolves and subscriber acquisition costs grow, customer loyalty will have a greater profit impact With more than 3 million subscribers (and climbing), Netflix is the leader in online DVD rentals. Founded in 1999 and rising out of the flames of the dot com bust, […]
The key deficiency here is lack of customer focus…
Q2 2007: Netflix’s Not So Excellent Adventure In August of ’05, I first wrote about the challenge Netflix faces to retain subscribers. With its 2Q 2005 average monthly churn at 4.7 percent, Netflix needed to replace more than HALF of its subscribers every year. Now two years later, average monthly churn for Q2 2007 is […]
Netflix controls subscriber acquisition costs and blasts new sub acquisition into orbit Last August I wrote about the challenge faced by Netflix to retain subscribers as new subscriber acquisition costs grew. With its 2Q 2005 average monthly churn at 4.7 percent, Netflix was projected to churn more than half of its subscribers annually. With its […]