Netflix CFO Discusses Lessons Learned from Stock Collapse
The finance chief of Netflix, which suffered a significant hit when it increased prices in September, spoke during the recent Credit Suisse technology conference on the "painful lessons" the company has learned over the past several months.
Barron's reports CFO David Wells said the price increases - which angered customers and led to a decline in subscriptions - were designed to move the company towards a future of streaming video, rather than DVD rentals.
Wells, however, acknowledged the move was a business decision rather than a consumer decision, according to Barron's.
"I think we broke some other social norms in terms of the amount of grandfathering or not grandfathering we did to the price increase and there was poor execution in terms of how it was communicated as well," Wells said.
Wells' comments come as Standard & Poor's recently lowered Netflix's credit rating from "BB" to "BB-" to reflect the hit taken by its video subscription service, reports The Associated Press.