One responsibility of a public relations or marketing department is to explain to senior management what the outcomes of any company decision would be. Usually, bad decisions can be stopped or altered in the pre-planning stages before it gets too late.
I can’t imagine this scenario was played out at Netflix. In July, it announced its DVD rental and streaming video services would be sold separately at $8 each. Netflix’s indifference toward its customers’ backlash led one analyst to say, “This would appear to illustrate that Netflix is simply not concerned with the prospect of losing customers.”
Customers will always have concerns over price increases, but Netflix had a double-whammy, as its streaming service also was being reduced (despite promises of increases). One or the other could have been tolerated over time, but not both.
In this AP article, it mentions Starz Entertainment ending negotiations (meaning fewer streaming options), and Netflix losing 600,000 customers from June to September.
Well Netflix, you’re getting what you deserve. Bad decisions for your customers always lead to bad outcomes for your company.