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Netflix still struggling

Article from: 
US
Tue, 24/01/2012 - 15:04
By: 
Ted Marzilli
Netflix still struggling

Netflix’ consumer perception has had a hard time recovering in the US, even six months after the company’s since-retracted announcement of splitting itself in two, as well as hiking its DVD rental and video streaming fees.

Netflix is slowly making its way back since it bottomed out the third week of November 2011, yet it is still well below its lowest perception point since early January 2008. Netflix is now running even with traditional premium cable channel HBO.

During this same period since January 2008, emerging competitor YouTube, now investing in original programming, mirrored Netflix’s upward trajectory until those back to back announcements in July. YouTube is now at an all-time perception high. Another Netflix competitor, Amazon.com, has had a similar trajectory and scores even higher than YouTube. The broad appeal of the two brands is an obvious strength in their efforts to build content businesses.

Netflix, Amazon.com, YouTube, and HBO were measured with YouGov BrandIndex’s Index score, its flagship measurement for overall brand health. The Index score is the average of six key sub-scores: Impression, Quality, Value, Reputation, Satisfaction, and Willingness to Recommend. All scores represent all adults 18+.

Beginning January 1, 2008, Netflix’s Index score began a successful run up from 21 to nearly 40 on July 8, 2011. From there, it dropped dramatically in the weeks following, bottoming out at 11 on November 18, 2011. Netflix’s current Index score is just below 10. HBO’s current Index score is very close at 17.

Amazon and YouTube have been steadily increasing the past four years and each more than doubles the current scores of Netflix and HBO. Amazon started January 1, 2008 with a 47 Index and is presently at 57. For the same period, YouTube started with a 20 Index score and is currently sitting at 44.

YouGov BrandIndex measurement scores range from 100 to -100 and are compiled by subtracting negative feedback from positive. A zero score means equal positive and negative feedback.

Netflix and Competitors Index Adults 18+
Netflix and Competitors Index Adults 18+
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