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Netflix Continues to Netflunk

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The DVD rental and streaming company Netflix has been on a rocky road the last several months. First, they implemented a [URL="http://www.huffingtonpost.com/2011/07/12/netflix-price-subscription-plan_n_895779.html"]large rate hike[/URL] for customer who use both their DVD in the mail and video streaming services which was met with a [URL="http://technolog.msnbc.msn.com/_news/2011/07/13/7074704-outrage-over-netflix-rate-hike-continues"]social media uproar[/URL] from its customer base. [URL="http://www.google.com/url?sa=t&source=web&cd=4&sqi=2&ved=0CDYQFjAD&url=http%3A%2F%2Fwww.mediapundit.net%2F2011%2F09%2Fnetflix-raises-prices-loses-customers-stock-price.html&ei=9jN7TpaVJ8WWtwe01PUE&usg=AFQjCNFdl7EgBipItLELXibU42-cBqT5zA&sig2=hXUTcJhwOEYwSSqZV2xZ6A"]Subscriptions and stocks plummeted[/URL] after the increase was announced and subsequent social media fall out. Last week, Netflix CEO announced their new plan: to [URL="http://www.google.com/url?sa=t&source=web&cd=4&ved=0CDQQFjAD&url=http%3A%2F%2Fmashable.com%2F2011%2F09%2F19%2Fnetflix-qwikster-apology%2F&ei=NjR7Tp2xO8i1twf5huEL&usg=AFQjCNHqslna1_-aGc0ZKTLQ5amwUv_ywg&sig2=chP9aXzbB79JKZ0K2Bweow"]re-brand their DVD service[/URL] and apologized to Netflix customers. That has been met with some media criticism, especially since their new DVD brand, they named Qwikster already has someone using the name on Twitter tweeting about being lazy and illegal drug use. Mediapost columnist David Berkowitz [URL="http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=158969"]sums up the Netflix situation[/URL] pretty well identifying one of the main core issues being their streaming selection and the recommendation feature not being strong enough.

Will Netflix survive or is there now room for a new DVD service takeover?

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