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I bet almost every single person at Netflix would agree that the goodwill of customers is valuable, and yet I doubt anyone has performed an actual mathematical
by Buttons840 5y ago
I bet almost every single person at Netflix would agree that the goodwill of customers is valuable, and yet I doubt anyone has performed an actual mathematical calculation that puts a number on the goodwill of customers and the amount that is likely to be lost by such a move.
Is this common in companies? I know it's a matter of opinion exactly how much the goodwill of customers is worth, but do companies ever make even a rough guess at putting a number on such things? I've never seen it done. Like people, companies seem to operate by emotion.
- version_five 5y agoWhatever the immediate calculation, I can see the argument for clamping down on password sharing from a brand perspective. If Netflix continues to have a reputation as something you can just mooch from someone else, it ends up devaluing it in people's perception, and the longer they let it go on, the worse it gets (even if they've probably left it too long already). So I think you're right that their doing it based on emotion, but it's probably more about overall strategy than just the math of how much money they'll lose in the short term.