Netflix has had one heck of a summer. In an attempt to increase profits, the online video streaming service raised its prices by "60 percent on one popular plan," according to Gawker. I'm not sure how Netflix CEO Reed Hastings thought consumers would react, but it's getting pretty ugly. Gawker reports that the company's stock dropped 17 percent last Thursday, a large amount of subscribers have canceled plans, and subscription projections have been cut by 1 million.
So what's Hastings' plan to win back customers? According to Mashable, Netflix is about to undergo a brand image overhaul. Hastings is looking to divide Netflix's DVD and online streaming video services, and to reintroduce the DVD division as a new division called 'Qwikster.' The rebranding effort will have to be a strong one, so look for Qwikster-themed promotional giveaways like custom printed pens and promotional flash drives.
In addition to its new name, Qwikster will also offer a new service: video game hires. I'm looking forward to seeing how the changes affect consumer opinion. Hopefully Netflix can regain its customers' trust and stop acting like an evil cable company!
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