The price increase was just the beginning of the Netflix rebranding strategy, a strategy that they have not only fumbled, but let the other team return for a touchdown. Let’s look past the fact that Netflix lost over 1 million subscribers after its price increase in August/September. Let’s also look past the fact that the company has lost half of its market value since July. Instead, let’s focus in on the companies reasons for tweaking its business model, and its rebranding marketing strategy, or lack-there-of.
Rebranding a Giant
When it comes to transitioning a brand giant such as Netflix, there must be a well researched, well thought-out, well planned strategy that includes segmented strategies for all possible scenarios. Netflix not only increased prices a few months back, but they have split their brand into two separate categories, with two separate websites, two separate customer bases, and two separate billing avenues for those customers. The brand that was once about affordability, instant access and usability has, in effect, told customers that they must go to two separate websites to do what they were once doing on just one site. They have taken their brand from simple to complicated, the worst rebranding that can be done.