5 Brands Most Likely To Be Gone By 2015 (and it includes Netflix) - High-Def Digest Forums
Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 12-07-2011, 07:08 AM
towergrove's Avatar
Senior Member
Thread Starter
 
Join Date: Aug 2008
Posts: 1,694
Default 5 Brands Most Likely To Be Gone By 2015 (and it includes Netflix)

Quote:
Prophet recently conducted a spot survey of some 5,000 U.S. consumers to see which brands they’d put on the deathwatch for anytime between now and 2015.

Anyone who even skims the news headlines will find their rankings no big surprise: Eastman Kodak topped the list with 27 percent of the group, with Netflix and the U.S. Post Office coming in with 19 percent and 18 percent of the vote. RIM (Blackberry) came as fourth most likely to fail (14 percent), and Sears came in fifth (11 percent).

But what struck me about this exercise was less the polled group’s choices and more their observations about these brands’ failings:
Quote:
About Kodak: “Bad product development, not forward-looking, not adapting to change…”

About Netflix: “They have shown they don’t know their own clients. They are not even clear with what they want as a company. It is a mess.”

U.S. Post Office: “Inefficient and obsolete.”

What emerged through the commentary was the identification of a distinct pattern of worst practices, and none of these struggling companies was seen as being guilty of having only one in play. Clearly, John and Joan Q. Public don’t need brilliant brand diagnosticians to help them figure out why a brand loses relevance. (And it’s a small wonder that a study by Havas Media Group found most people wouldn’t care if 70 percent of all brands disappeared today.)

Among the most common failings to emerge:

Lacking an understanding of what customers want, and providing a poor customer experience as a result. Consider Best Practice companies like Nordstrom, Amazon, Disney, and Zappos, all of which make the end-to-end customer experience the mantra by which they live.

Lagging on innovation, and in response to competitive and environmental pressures. Although Apple sets a high bar for best practices (how many categories can one company single-handedly create, after all?), we’ve also been impressed with U.K. retailer Tesco, an early pioneer of self-checkout, the “club” store concept, and online shopping.

Pricing missteps and insensitivities. On the best practice side of this sticky wicket are brands that aren’t afraid to buck accepted industry policy. U.S. Cellular, with its Belief Project, has built legions of loyal customers by doing away with the ubiquitous contract for many, along with a variety of “nickel and dime” charges and fees, while Southwest Airlines has similarly grown goodwill and market share by not charging the standard airline industry baggage fees.

Ineffective management and outmoded business models. Consider ZipCar as a Best Practice example for having supplanted the traditional car rental approach, as an on-demand car sharing membership organization for urban dwellers.

Failure to keep up with the digital revolution. For best practices, think streaming, as per NBC/Hulu’s success with video and Spotify’s with music, the New York Times’ much lauded mobile app for news content, and the American Red Cross’ embrace of social media to facilitate emergency fundraising.

While we did not conduct this study five years ago, my guess is that brands such as Ford, Motorola, Xerox and others could well have made such a list back then. All have adopted one or more of the best practices I identified to turn their games around. So there may, in fact, be hope for the five brands most identified for failure by our survey group.

As we head into 2012, it’s a pretty safe bet that the business landscape will continue to be littered with casualties of a limping economy combined with insurmountably poor management practices. The question is whether those that are struggling the hardest can adjust fast enough to survive.
http://www.forbes.com/sites/scottdav...-gone-by-2015/
Troubling, simply Troubling. Maybe removing Reed H. from making company decisions would help? Seems like every time they let him speak, things get worse for the company. Quoting a line from Yoda:
Quote:
YODA: Told you I did, reckless is he...now matters are worse
Reply With Quote
  #2  
Old 12-07-2011, 07:26 AM
chris gerhard's Avatar
Senior Member
 
Join Date: Apr 2007
Posts: 2,820
Default

I agree Kodak is probably gone unless a currently successful digital era company buys it and brands products with the Kodak name. I know nothing about RIM (Blackberry) but based on everything I have read, it is dying quickly. I still shop at Sears but I don't see young shoppers and see little chance it survives beyond 2015.

I think Netflix will be alive and well in 2015, still profitable although competition might be gaining marketshare by that time. Either there will be a viable market for internet streaming and disc rental by mail or there won't but if there is, Netflix will be alive and I think there will be.

The USPS is actually the biggest story and if it is dead and buried by 2015, I would like to see the viable successor for mail delivery. I think a smaller USPS is alive and well by 2015, things will be different but we aren't ready for the USPS to disappear.
Reply With Quote
  #3  
Old 12-07-2011, 07:30 AM
towergrove's Avatar
Senior Member
Thread Starter
 
Join Date: Aug 2008
Posts: 1,694
Default

Quote:
Originally Posted by chris gerhard View Post
I agree Kodak is probably gone unless a currently successful digital era company buys it and brands products with the Kodak name. I know nothing about RIM (Blackberry) but based on everything I have read, it is dying quickly. I still shop at Sears but I don't see young shoppers and see little chance it survives beyond 2015.

I think Netflix will be alive and well in 2015, still profitable although competition might be gaining marketshare by that time. Either there will be a viable market for internet streaming and disc rental by mail or there won't but if there is, Netflix will be alive and I think there will be.

The USPS is actually the biggest story and if it is dead and buried by 2015, I would like to see the viable successor for mail delivery. I think a smaller USPS is alive and well by 2015, things will be different but we aren't ready for the USPS to disappear.
Yes Sears is an old brand. I remember they were the only ones in town with a good Laserdisc sales section back in the day.

Netflix is expected to be operating in the Red next year.
Reply With Quote
  #4  
Old 12-07-2011, 08:30 AM
Kosty's Avatar
Senior Member
 
Join Date: Apr 2007
Posts: 28,296
Default

Yikes, certainly not good PR for Netflix considering who was surveyed.
Reply With Quote
  #5  
Old 12-07-2011, 12:55 PM
Senior Member
 
Join Date: Aug 2007
Posts: 2,134
Default

I think these articles about the death throes of Netflix are missing how quickly the market can change- wasn't blockbuster on lists like this a year ago? And today blockbuster seems like it's in decent shape...
Reply With Quote
  #6  
Old 12-07-2011, 12:59 PM
ack_bak's Avatar
Senior Member
 
Join Date: Jan 2007
Posts: 20,623
Default

Quote:
Originally Posted by h0mi View Post
I think these articles about the death throes of Netflix are missing how quickly the market can change- wasn't blockbuster on lists like this a year ago? And today blockbuster seems like it's in decent shape...
I was thinking the same thing.. A year ago nobody on this forum would have predicted the chain of events that happened for Netflix. Crazy. I think in the digital age it will be all about being the content owner/creator. The studios are starting to figure out delivery and there is just no reason to have a middleman.
Reply With Quote
  #7  
Old 12-07-2011, 01:21 PM
Kosty's Avatar
Senior Member
 
Join Date: Apr 2007
Posts: 28,296
Default

I think something like this is an over reaction as well.

I like Netflix especially for old TV series and odd documentaries and for watching stuff while I am traveling around on business.
Reply With Quote
  #8  
Old 12-07-2011, 01:33 PM
towergrove's Avatar
Senior Member
Thread Starter
 
Join Date: Aug 2008
Posts: 1,694
Default

Quote:
Originally Posted by ack_bak View Post
I was thinking the same thing.. A year ago nobody on this forum would have predicted the chain of events that happened for Netflix. Crazy. I think in the digital age it will be all about being the content owner/creator. The studios are starting to figure out delivery and there is just no reason to have a middleman.
As long as that "delivery" is in the form of Ownership as well as rental, I don't care what the studios do.
Reply With Quote
  #9  
Old 12-07-2011, 09:26 PM
Sbert's Avatar
Senior Member
 
Join Date: Jul 2007
Posts: 6,069
Default

Kodak is fine, it lives off patents and will do forever. Now if someone buys the patents from Kodak and it slowly sells those away over time, or gets bought by another company, then dissolved, that's a possibility I guess.

BTW, Eastman is doing just fine.
Reply With Quote
  #10  
Old 12-07-2011, 09:52 PM
cakefoo's Avatar
Senior Member
 
Join Date: Dec 2007
Posts: 2,418
Default

Netflix CEO Reed Hastings On Mistakes, Biggest Competition

Quote:
SAN FRANCISCO — To hear Netflix CEO Reed Hastings tell it, the bone-headed decisions that have dragged down the Internet's leading video subscription service during the past five months eventually will be forgotten like a bad movie made by a great film director.

Shaking off the stigma of a massive flop won't be easy, a challenge Hastings acknowledged late Tuesday when he spoke at a UBS investor conference in New York. After his host mentioned the mystique surrounding Hastings as Netflix's fortunes soared a year ago, Hastings quipped: "Now, it's just pity."

The self-deprecating humor prefaced a 45-minute treatise on why Hastings believes Netflix will overcome its recent adversity and remain at the forefront of a shift that increasingly will turn watching Internet-distributed video into one of the world's most popular pastimes. This coming as high-speed connections, mobile devices and more sophisticated televisions become commonplace.

His long-term vision calls for Netflix to be selling Internet video subscriptions at prices starting at $8 per month in most markets outside of China.

"If you fundamentally believe Internet video will change the world in 20 years, we are the leading play on that basis," Hastings boasted. He quickly added a caveat: "As long as we don't shoot ourselves in the foot anymore."

Hastings sounded like he intends to stick around to lead the way, despite questions about recent moves that triggered a customer backlash and a staggering decline in Netflix's stock price that has wiped out three-fourths, or about $12 billion, of the company's market value in five months. Netflix Inc.'s stock was trading at about $71 midday Wednesday, down from a peak of nearly $305 in July when the company infuriated its U.S. subscribers by announcing plans to raise its prices by as much as 60 percent.

The sell-off has surprised and humbled Hastings, who revealed on stage that he had curtailed his sales of his Netflix holdings earlier this year because he was convinced the stock would quickly hit $1,000.

Hastings said his biggest mistake was trying to phase out Netflix's once-trailblazing DVD-by-mail rental service more quickly than millions of customers wanted. He and his management team concluded a few years ago DVDs that are destined to obsolescence, so they began concentrating on streaming video over high-speed Internet connections. Ending Netflix's practice of bundling DVD-by-mail and Internet streaming subscriptions together so people are forced to buy them separately was meant to push more households into weaning themselves from discs. Customers instead saw the move as a betrayal by a greedy company and canceled their subscriptions in droves.

"We became a sort of a Bank of America symbol, which is super unfortunate," Hastings said Tuesday in comments monitored on a webcast. "We berate ourselves tremendously for that lack of insight because it didn't need to be that way. But, you know, in three or five years, we aren't going to remember it. It's going to be: `Did we succeed at streaming?' That's all people are going to care about in three or five years. So we are not losing too much sleep over it. We are charging ahead."

There's damage to repair along the way.

Netflix entered October with 800,000 fewer U.S. subscribers than it had at the start of July, and the company has said there have been additional defections in the past two months, although the number hasn't been quantified.

The result: Netflix isn't bringing in as much money as it hoped to pay for an expansion in in Latin America and Great Britain and cover rising fees to license movies and TV shows for its video-streaming library. The shortfall will saddle it with a loss next year, the first time that has happened in a decade.

Hastings said he expects Netflix to enjoy robust subscriber growth next year, although he doubts the company will be able to match its performance during the first six months of this year when it added nearly 5 million subscribers. Virtually of the company's future growth is expected to come from streaming-only subscriptions.

"DVD will do whatever it will do," Hastings said. "We are not going to hurt it, but we aren't putting a lot of time and energy into it."

Netflix ended September with 25.3 million subscribers worldwide, including 23.8 million in the U.S. Nearly 14 million of the U.S subscriptions included a DVD-by-mail plan.

To ensure it will have enough money to finance its ambitions, Netflix recently raised $400 million by issuing convertible debt to one of its major stockholders and selling 2.86 million discounted shares. That stock sale further irritated investors because Netflix spent nearly $200 million buying back 900,000 shares of its stock at an average price of $218 during the first nine months of the year.

Hastings said Netflix probably could have gotten by without the extra money, but he decided to raise the extra cash to avoid a "crisis of confidence" among the company's suppliers, including movie and TV studios that license their video and sell their DVDs to the company.

Increasing competition is another major concern hanging over Netflix. Amazon.com Inc., Wal-Mart Stores Inc., Dish Network Corp. are already offering subscription packages that include Internet video. Verizon Communication Inc. declined to comment on reports it may also enter the market.

Hastings said he doubted Verizon will make much of a dent unless it is prepared to pay between $1 billion and $2 billion annually to obtain the rights to professionally produced video. Right now, Hasting said, only Netflix and Time Warner Inc.'s HBO pay channel have made that kind of commitment.

"If they are not willing to invest at those levels, it pretty hard to compete with us or HBO," Hastings said. He went a step further, branding HBO as Netflix's biggest rival now that the channel as expanded beyond cable TV with an on-the-go application for Apple Inc.'s iPhone and iPad, as well as devices running on Google Inc.'s Android software. The app is free, but viewing content on the devices still requires an HBO cable subscription.

"It will be a little bit of an arms race with us," Hastings said of HBO. "Hopefully, we will end up both creating amazing consumer experiences and end up pushing the bar in a positive way for each other."
http://www.huffingtonpost.com/2011/1...ref=technology
Reply With Quote
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Most likely Outcome at CES = Warner Still Neutral danbala High Definition Smackdown 53 12-11-2007 01:20 PM
Which studio are you most likely to follow? Thulium High Definition Smackdown 36 11-05-2007 05:33 PM
Dual format to win - most likely... Sbert High Definition Smackdown 0 08-20-2007 11:43 PM
360 will most likely go Blu Nick Lavigne Gaming Smackdown 25 03-27-2007 03:45 AM


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off