What Is Netflix's Ethical Dilemma

Imagine being completely dedicated and embedded in a company and suddenly that company one day up and turns its back against you. This is exactly the ethical dilemma Netflix faced with its subscribers in September of 2011 when the company wanted to become two separate entities. Netflix founders Reed Hastings and Marc Randolph decided to have “instant viewing” for subscribers as one entity and the other be called Qwikster which allowed viewers to rent movies and games the original DVD in the mail way. This change also brought forth pricing changes for subscribers. Instant viewing would cost subscribers eight dollars per month or you could have that along with Qwikster for fifteen dollars per month. Subscribers were then notified of the new changes by Netflix via email and within a month over 800,000 subscribers canceled their accounts. Founder Reed Hastings would soon apologize and Netflix remained with its traditional ways of operation. Did

The loyalties Netflix has is to its subscribers and the founders are loyal to each other. First and foremost Netflix must remain loyal to its customers because that’s where revenue comes from. Without the millions subscriptions Netflix could possibly be out of business like Blockbuster. However Netflix knew subscribers is what keeps the company popular and they remained loyal to them. In an article titled ““I messed up,” Netflix CEO says” written by the CNN Wire staff Reed Hastings said “I messed up, I owe everyone an explanation." Hastings knew in the end Netflix’s wouldn’t prosper if the subscribers wouldn’t back his and Randolph’s decisions. Lastly, Hastings and Randolph must remain loyal to one another because they are co-owners of a big time company. They must trust and have faith in each other so they can both make the company the best it can. Loyalty in co-ownership is significant because if feuding begins it could hinder Netflix