Netflix is taking some competitive heat from Blockbuster and the movie rental service has begun to see erosion in its subscriber base after an impressive period of growth that began with the company's founding in 1998. To help it regain its momentum, Netflix has ended its email customer service and instead gone to a 24-hour phone service that will enable subscribers to talk with a real person.
"My guess is they're trying to nip that in the bud," Michael Pachter, an analyst with Wedbush Morgan Securities, told the San Francisco Chronicle. "They can talk someone out of quitting. You can't do that online via e-mail. ... It's a very smart move."
Netflix lost about one percent of its subscribers in the latest quarter going from 6.797 million customers to 6.742 million.
Netflix spokesperson Steve Swasey said the move to the phone service was planned for some time.
"We continue to improve what is already the best customer experience on the Internet," he said.
Netflix rival Blockbuster offers both online and telephone support for its customers.
Discussion Question: Will speaking with a real person improve subscribers' perception of Netflix' customer service? Do you expect other companies to follow the Netflix lead or will more rely on email, in some cases, to the exclusion of phone service?