Many Netflix subscribers, myself included, were confused by the company’s decision-making last fall. First, the prices increased about 60 percent. Then, you may recall receiving a bizarre e-mail from CEO, Reed Hastings; I had frankly never heard of him until I read his two-page apology e-mail, saying “I messed up” and “Quickster” which left me even MORE confused about my DVD and instant-queue services. Subscribers were dropping like flies and shareholders were bracing themselves for some rough times ahead. However, according to a recent New York Times article, Netflix is experiencing a turnaround!

After a loss of about 800,000 subscribers in the third quarter, it is clear that there were some managing techniques that were not carried out to their optimal performance. It may be that Netflix assumed its market advantage meant that customer’s loyalty would withstand a price influx.

Unfortunately, the customer’s subjective view of Netflix’s quality did not match higher prices. After many problems in areas such as performance (Instant stream videos would buffer FOREVER), reliability (the biggest blockbuster has been taking weeks to get to the front door!) along with reputation (Reed Hastings’ apology letter [http://blog.netflix.com/2011/09/explanation-and-some-reflections.html] left many subscribers feeling that the CEO had just written them a high school breakup letter, not something caliber of well-managing CEO) all led to a negative perception of Netflix’s overall quality.

However, after a rebounding fourth quarter, it may seem that the forecast is changing for Netflix! Stock has increased about 30 percent in the last few weeks. This may be because Netflix had spent the past quarter reexamining Netflix’s product lifecycle. According to the New York Times, Netflix is no longer putting as much weight in its DVD options; with changes to technology (smart phones and tablets now seem to be at everyone’s fingertips, allowing easy media-viewing without a DVD player) the product lifecycle for DVDs is at the cusp of its decline stage. Instead, instant stream has taken the main stage. And Netflix’s instant-stream product opportunities may be looking even brighter due to recent legal changes to internet viewing rights (PIPA and SOPA) which may tighten the restrictions on media-access.

Through Netflix’s focus on instant streaming, be it a better selection of films or higher quality of picture, the company will have an easy time relating what the customer wants (movies instantly to their home) and how Netflix can provide a service to fulfill this want, and therefore, creating an optimistic outlook for the company after a somewhat turbulent autumn.

Do you think Netflix is on target with matching its services with its customers’ needs? What do you think about the product lifecycle of DVDs in relation to Netflix’s business model? What type of forecasting outlook do you think Netflix has?

http://www.nytimes.com/2012/01/26/business/media/a-turnaround-at-netflix-as-its-mail-sector-shrinks.html?_r=1&ref=business

My slumlord, the man who collects the monthly rent on the squalor I call my college residence, was not prepared for what the New Year of 2012 had in store for him. As the ball dropped on New Years Eve, so did my ceiling, causing 4×5 square feet of plaster to land on my dining room table, breaking it clean in half (No one was sitting at the table, so luckily no one was hurt).

There could not have been a better platform to exercise some skills in project management! The work, defined as fixing the gaping hole as well as making sure no future injury or cave-ins would occur, had a deadline of two weeks (as stated in the lease). Also, since my Slumlord is a dentist by day, I found the job to be unfamiliar to him, as well as having complex interrelated tasks. I suggested to the Slumlord that a licensed carpenter would do best at completing the project.

The Slumlord doesn’t like project management very much. He does seem to like micro-management, however, and has insisted on doing the entire project himself. Eleven days later, and the ceiling inspires terror to all who venture beneath its clumsy workmanship. It seems some key characteristics in successful project management were lost, including top-down commitment (because the Slumlord could not care about his property any less before it before it is classified as condemnable) and good communication (because he insists on talking over me whenever I make a request involving the project).

Here’s to hoping that next week’s lesson is in management and conflict resolution… Or how to manage ending a lease early.

What trade-offs are being faced by the performance failures? What techniques can be used when project management is not going accordingly?