The Netflix conglomerate has had revolutionary impact on how people consume television and TV. The ease with which busy Americans can insure they have the new date-night flick by Saturday or the new Disney movie to entertain their rugrats, beats the old way of driving across town from Blockbuster to RedBox, in hopes of securing the “it” flick. However, the simplistic, cost effective method ultimately had a larger price.
While customers were still occupied and amazed by the company’s original brilliance, Reed Hastings, CEO of Netflix, was busy creating a sister company which would allow customers to view videos immediately without the pre-ordering process. Unfortunately, Netflix, not able to meet the increased price demands of major motion picture companies, without hitting the customer, hatched the plan prematurely. Basically, customers were now paying two companies, Netflix and Qwikster, for the same services they originally were getting for one price.
As a leader during a tumultuous economy, Hastings, innovated a new business venture, but unfortunately, Netflix customers were up in arms against the price hikes without increased benefits. It is not the vision and attainment of said vision that make Hastings a good leader, it is his wisdom and lack of pride. While Hastings could have stuck it out and insisted on having two separate companies, instead, he swallowed his seven years of hard work and closed Qwikster, for the betterment of maintaining loyal customers. During a time when Americans are frantically shaving expenses, Hastings ability to admit his failure and respond appropriately is what will keep Netflix in business.