11 big business fails of 2011
The video-by-mail and video-streaming service was riding high after years of growth until its chief executive announced a 60 percent rate increase in some cases. Netflix executives predicted some of its 25-million subscribers would drop the service, but the cancellation rate far exceeded expectations.
Then the company bizarrely announced the brand was splitting up -- Netflix would just be for streaming, while a new service, Qwikster, would be for DVDs. Qwikster never launched, and Netflix retreated on that plan. The company has not retreated on the price hike, though, despite stock drops.