What Netflix’s Downturn has to do with Ministry

On July 13, 2011 Netflix stock hit an all-time high at $304.79! It appeared that Netflix could do no wrong as the success of their business helped put Blockbuster in bankruptcy and Hollywood Video out of business. Everyone seemed to have a Netflix account and it was expanding at a rapid pace with lots of growth possibilities as they were going into new markets such as Latin America and the U.K.

But on Oct. 24, 2011, the latest turn in a complete souring of Netflix has come to pass as the company announced at it’s 3rd Quarter results that a mass exodus of subscribers resulted in a continued stock plunge all the way down to $85 a share! Currently, Netflix is trading at just over $79 a share. That’s a far cry from just 7 months ago.

So how did Netflix get here?

• It unexpectedly raised prices significantly which caused a huge customer backlash. In the 3rd Quarter of 2011, they lost 800,000 subscribers. That’s a sharp decline from a normal increase of subscribers from quarter to quarter (from 2009 to 2011 so far it had gained 13.3 million subscribers). This rising of prices caused an exodus that continues to this day.
• Many analyst don’t believe it has a sustainable business model. Critics of Netflix have said for years that Netflix doesn’t have a sustainable business model because of the content costs of TV shows and movies (content prices continue to cost Netflix more money each year). Content costs go up regularly and Netflix doesn’t have the operating income to continue to pay for future content.

So how does Netflix’s downturn apply to ministry? Netflix’s decision to raise prices surprised many of their customers and their current business model has caused a huge negative backlash which have their customers leaving. In the same way, in ministry the decisions we make are going to either have a positive or negative effect on our customers (students). If they buy into what we are selling, they will stick with us and go where we are leading. But if they are caught off guard and don’t feel like they have any say into what you are doing, then they are likely to become uninvolved and carefree about being apart of what you are doing. Our students are valued investors into our program. If we honor and respect them enough we need to incorporate them into what we are doing rather than tell them what they are doing. When we tell them and not bring them along, they become spectators not participants and we run the risk of losing their interest.

In addition to their decision-making, even when their stock price was soaring, Netflix’s business plan was viewed as highly suspect. Many believed that Netflix couldn’t continue to rise with high content costs and little income coming in. Their overall income plan seemed flawed and unable to sustain itself. Similarly, our ministry plan needs to be fleshed out and purposeful with achievable goals to be successful. It needs to be thought through and processed out with others (students, leaders, parents, senior staffers). By vetting it out with others, we make others feel included but we are also able to work through all the details so that the direction we are taking is completely processed and deemed best for the program.

So, with all this being said, what is your ministry plan to reach students for Christ and make them disciples? Do you have a plan? How well thought out is it? Have you shared it with your leaders or parents?

Netflix’s fall from grace was far more disastrous than it’s meteoric rise. It is a great example of what can happen with poor decisions and without being properly planned out. Don’t let what happened to Netflix happen in your ministry. Make sure you are always taking care of your customers (students) and that you have a ministry plan that is well thought out and vetted.

Thoughts? Comments? Questions? Experiences? Post a comment and let the discussion begin so that we can all benefit from it.

Thanks to Bloomberg for being a primary source to this posting.