Bank of America (BAC) Can Learn a Lot from Netflix (NFLX)
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If Bank of America (NYSE: BAC) execs were smart, they would take a look at Netflix's (Nasdaq: NFLX) news Monday and possibly reconsider the upcoming debit card fee.
Netflix rescinded the recent move to split its DVD and streaming businesses into two separate websites.
"It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," CEO Reed Hastings said. "This means no change: one website, one account, one password… in other words, no Qwikster," he continued.
An analyst at Goldman Sachs suggested if Netflix hadn't backed off on the move, the company could have lost a majority of its 12 million hybrid subscribers, or half its U.S. subscribers.
Netflix tried to change the way it did business and customers didn't like it. Netflix customers spoke and the company listened.
With a $5 monthly charge to use their debit cards, Bank of America is also trying to change the way business is done. While the charge may be justified because of the Durbin amendment, the bank may need to reevaluate how it recoups that lost revenue.
Bank of America customers are outraged, yet there is still time to backtrack on the fee hike. Is Bank of America listening?
Netflix rescinded the recent move to split its DVD and streaming businesses into two separate websites.
"It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," CEO Reed Hastings said. "This means no change: one website, one account, one password… in other words, no Qwikster," he continued.
An analyst at Goldman Sachs suggested if Netflix hadn't backed off on the move, the company could have lost a majority of its 12 million hybrid subscribers, or half its U.S. subscribers.
Netflix tried to change the way it did business and customers didn't like it. Netflix customers spoke and the company listened.
With a $5 monthly charge to use their debit cards, Bank of America is also trying to change the way business is done. While the charge may be justified because of the Durbin amendment, the bank may need to reevaluate how it recoups that lost revenue.
Bank of America customers are outraged, yet there is still time to backtrack on the fee hike. Is Bank of America listening?
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