The NYTimes’ Brian Stelter and Nick Wingfield try to deconstruct what went wrong at Netflix. Their theory? Netflix discounted the emotional connection that people have with the DVD service:
Like many other companies built in Silicon Valley, Netflix prides itself on its analytical, data-driven approach to making decisions. But it made a classic business misstep. In its reliance on data and long-term strategy, the company underestimated the unquantifiable emotions of subscribers who still want those little red envelopes, even if they forget to ever watch the DVDs inside.