Did Netflix practice good or bad public relations by cancelling the split between its DVD and streaming services?  One could argue either way.  The first argument is that Netflix should have known better than to split them in the first place.  Had it done market research, its customers would have told them it was a bad idea.  The second argument is that Netflix listened and reacted quickly when it discovered it had blundered.  Take your pick.  The first argument seems more reasonable.  The bad reaction the company received when it announced the split should have been foreseen.  There was no mystery to what Netflix wanted to do, and customers could understand readily the change.  Netflix’s blunder has hurt the company’s brand and damaged the perception that it knows what it is doing as it navigates the changing video market.  if you look at the company’s stock, you will see a high-flyer that has crashed to earth.  Netflix’s mistake has already cost it dearly.  It will take time to come back.

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