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How NOT To Be…Netflix


Image representing Netflix as depicted in Crun...

Image via CrunchBase




In our next story on how freelancers can learn from some of big mistakes that company’s have made, we turn our focus to Netflix, the online streaming video service.


Let me just say that I absolutely love Netflix. In fact, I’m watching a movie as I write this on Netflix; and regardless on how their mistake over the summer happened, in hindsight, even I realized that Netflix is probably the best of the online streaming and DVD services. So what happened during the summer that caused Netflix users to flip out? Well, there was a lot…


1. Changing Prices on a Client


The first misstep Netflix did was jump up the price for their service. Everyone who was signed up for both streaming and DVD service found themselves with a price hike of 60% and a split of the DVD and streaming services that was announced in the summer of 2011.


Raising the price on service isn’t new and really isn’t as bad as you would think; it probably wasn’t even the price hike that annoyed people. It was the way that Netflix handled the whole thing. In raising the prices for a client, freelancers should consider how to approach the client about the raise. Outlining the reasons for it and perhaps a gradual raise would be more effective than Netflix’s bomb drop.


2. The Client Ditches You


While the price hike was Netflix’s biggest mistakes, having Starz pull their exclusive content from Netflix was the second thing that nearly collapsed the company.


In terms of freelancing, when one of your big paying clients decides to drop you, that can be the worst thing possible. From experience, many of the Bright Hub writers were let go when the site decided to go the way of How Stuff Works; for me, Bright Hub was my huge money making client, because not only did I get paid twice a month, but I had revenue with the many times that people clicked and read my articles.


And we’re talking over a thousand articles here.


The best way to get over this is one, discover why you may have been dropped in the first place and two, make sure you have a second, third, fourth, etc of clients lined up so that you aren’t missing any bill payments.