Between July and October, 2011, Netflix’s stock nearly collapsed after it announced losing over 800,000 subscribers due to it’s highly scrutinized price hike. As a Netflix user from the beginning, I wasn’t thrilled about a potential 60% increase, still I valued the connivence and innovation that Netflix offered. Looking back, I wasn’t as much disappointed at paying the $16 a month, as I was by the manner by which the announcement was made. Needless to say, Netflix has rebounded and ended 2013 as the top performing stock on the S&P 500 and Nasdaq 100 – reaching an all-time high of $365.
Ask founder and CEO, Reed Hastings what happened, and you’re likely to hear that they took their eye off the customer. Like Steve Jobs, and Jeff Bezos; Hastings doesn’t think in 3-5 year increments, he’s obsessed with figuring out how you’ll watch television and stream movies two decades from now; and if you’re one of the 40 million who subscribe to Netflix, you’re undoubtedly aware of their efforts to do so. As one of the most trusted advisors to small businesses, Jim Blasingame has never been shy to remind an entrepreneur that ‘the marketplace is indifferent to your very existence, let alone your survival and success.’ In his latest book – Age of the Customer – he will convince you that not only has the power shifted to your customer, it’s this expectation that will dictate your survival.