Netflix stock is up by a surprising 10.8 percent after Citigroup released the results of a customer satisfaction survey which said that Netflix customers are increasingly satisfied with the service. My first thought? "There's nowhere to go but up at this point."
Netflix customers are happier; stock rises
Nowhere to go but up at this point.
I don't know about anyone else, but I have finally made peace with Netflix's limited selection for their streaming service. I was infuriated about it for several months after switching from the DVD-only plan. But then I realized, hey, it's only eight bucks a month.
That's about 26 cents per day. I definitely feel like I get my 26 cents' worth, even if every time I search for something it isn't there. Nevertheless, I'm OK with chipping in a quarter every day to watch the stuff that rolls up on the New Releases queue. I mean, hey, Season 2 of The Walking Dead just became available, as did the second season of the new "Sherlock" BBC series.
So I guess in that sense, my satisfaction levels have risen. It's definitely setting the bar low, but once again, there's nowhere to go but up.
And people's satisfaction levels are naturally going to gradually rise as we get farther and farther from the infamous Qwikster debacle. It is clear that Qwikster will be Netflix's New Coke, the thing everyone brings up when they want to mock bad corporate decisions. Netflix should just count its lucky stars it changed its mind and cut its losses so quickly. If memory served, they kept making New Coke for years after it became abundantly clear that no one liked it.
Netflix had better start recovering fast, though. A lot of competition is hot on its tail: Amazon is gaining ground, and both Verizon and Redbox are planning to release their own streaming video services between now and the end of the year. This fragmentation of the market is going to encourage a lot of people to service-hop, especially since I bet a lot of them will be offering free trials.
Netflix has clawed its way up to a share price of $62.58, up from an all-time low of $52.81 in August, when the Qwikster debacle was at its worst. Of course, it's still a long way from the all-time high price of the stock, $133.43 per share, which the company set in February. Let that serve as a lesson to future captains of industry: if it ain't broke, don't fix it.