Netflix shares hit their all-time-low this year on Wednesday, leaving CEO Reed Hastings with a little less to be thankful for.
http://articles.businessinsider.com/2010-07-21/tech/30041565_1_netflix-nflx-subscriber
The company has been suffering since its announcement of the controversial price hike this summer and later attempt to separate the DVD rental service. Since these heavily resisted business moves, Netflix has lost 800,000 subscribers in the third quarter alone.
So now what does Netflix do? Financially they have planned to sell $200 million in common stock and $200 million in bonds to raise cash to expand into U.K. and Ireland and guarantee more content deals. But what about communication-wise? How does Netflix use communication to reverse the company profits?
For one, Netflix can start being a lot more transparent in their business methods. The DVD/online streaming split announcement back in September nearly destroyed the company’s image. To make up for lost ground, Netflix should try to create content to drive consumer engagement. This would show Netflix is listening to their consumers and has learned from their mistake.
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