• by Wayne Friedman , Staff Writer, October 12, 2011

Apologies aside, Netflix didn't backtrack on one point in its Qwikster snafu that mattered most: pricing. Netflix is keeping its 60% monthly increase for consumers. (Thanks. My medical premiums only went up 10% this past year).

For the company, it kept something perhaps more important: The brand name Netflix. Will consumers still be happy about that?

In all this mess, Netflix CEO Reed Hastings got something right: Consumers like simplicity. (Take note, all you proponents of cable industry a la carting). One price, one bill. Period.

Netflix still needs to remedy the issue of building its stocks of media -- television, movies and, perhaps, video games. It needs a good brand name for that -- and a lot of convincing to do.

CBS, Time Warner and others still resist the idea of giving Netflix the really good stuff -- their most current shows/movies -- rather than just older library material that is looking for new monetization.

The big issue for both future business and consumer partners is, what type of marketing message will Netflix push out the door in the months to come, in the media and perhaps on television specifically?

This big messaging seems necessary -- more than previously. That’s because Netflix is no longer the "anti-cable" brand; the anti-TV establishment business; or the under-ground media service that consumers love. It is now part of that establishment because - like it or not -- it made one big mistake, and consumers have long memories.

The good?  Even at $16 a month versus $10 a month for its combined DVD-by-mail and Internet streaming video service, this is still a great deal for most consumers.

Taking the Netflix-inflicted thorn out of a still angry, and now more spurned consumer, Netflix needs to carefully keep what is valuable in this relationship. It needs to alter its sweet-nothings love message.