Like many other companies built in Silicon Valley, Netflix prides itself on its analytical, data-driven approach to making decisions. But it made a classic business misstep. In its reliance on data and long-term strategy, the company underestimated the unquantifiable emotions of subscribers who still want those little red envelopes, even if they forget to ever watch the DVDs inside.
The NYTimes' Brian Stelter and Nick Wingfield try to deconstruct what went wrong at Netflix. Their theory? Netflix discounted the emotional connection that people have with the DVD service:
Posted by David Chen Monday, October 24, 2011 6:58 PM