This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Netflix Plummets in Customer Satisfaction

NEW YORK ( TheStreet) - Netflix (NFLX - Get Report) had a tough year. The embattled video company saw shares tumble more than 60% amid a series of blunders that included mishandling a subscription price hike and confusing consumers with plans to split up the company's DVD-by-mail and subscription businesses.

CEO Reed Hastings, who took a $1.5 million pay cut after the company's turbulent year, was also named the worst CEO of the year by readers of TheStreet.

Netflix CEO Reed Hastings

It may come as little surprise then that customer satisfaction at Netflix declined this year more so than any other online retailer survey surveyed by analytics firm ForeSee. Netflix, which had previously topped the poll in previous years along with Amazon (AMZN), saw its customer satisfaction slide 7 points to 79 on the study's 100-point scale.

"Netflix totally misread its customer base and is paying the price, damaging its brand among both consumers and investors," ForeSee president and CEO Larry Freed said in a press release. "Raising prices by 60% and splitting the baby into separate DVD and streaming services totally undermines Netflix's cost and convenience advantages. Customer satisfaction is predictive, which means that Netflix's financial woes may be just beginning."

Besides Netflix, other online retailers also saw declines in customer satisfaction, including Gap (GPS) and Overstock (OSTK), whose scores dropped to 73 and 72, respectively.

Shares of Netflix fell 0.8% in late morning trading on Thursday to $68.63.

--Written by Olivia Oran in New York

>To follow the writer on Twitter, go to http://twitter.com/Ozoran.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NFLX $115.03 0.00%
AAPL $112.76 0.00%
FB $89.43 0.00%
GOOG $618.25 0.00%
TSLA $249.06 0.00%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs