It's not often that a CEO sends a public note to key constituents taking responsibility for a bad decision.
But Netflix CEO Reed Hastings did exactly last September in his apology letter to customers. While some bloggers commented that the confession was like suicide, many others found his willingness to share the decision making process refreshing. He wrote:
Last year, Netflix create Owikster to spin-off the video streaming part of its business from its core DVD-by-Mail operation. To encourage on-line downloading, it unbundled its virtual and snail mail offerings, jacking up the combined price about 60 percent. Hundreds of thousands of enraged customers dropped their subscriptions in response. Netflix's profit was badly hurt as well as its image and trust: its stock price has declined over 65 percent during the past year.
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