August 21, 2007

Google Reverses Position On Video Refunds; Good For Them

Michael Arrington

19 comments »

We criticized Google last week when they shut down their video marketplace and told users they would receive refunds only through a Google Checkout credit. We called it a “mistake” and suggested that users might be hesitant to try out for-pay Google products in the future.

Today, though, Google admits the error, says they will give users a full refund via a credit card, and allow users to watch video for another six months. Previously Google said videos would be unavailable after August 15.

Well done, Google.

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  1. Chris

    They also said that users who’ve already received Google Checkout credit will get to keep it in addition to getting their full refunds in cash. It’s always nice to see a big company actually own up to a mistake and not try to sweep it under the rug…

  2. Tim

    The power of the blogosphere in action!

    So they do have a soul. =^)

    Tim McCormack
    iRent2u.com - the Online Rental Marketplace

  3. Garth Hall

    A good move on Google’s part to recant. Goodwill gestures go a long way. They do get a touch arrogant at times but understandably so (how would we sustain life, as we know it, without them?).

    And you guys are so brave.. Well done, TechCrunch.

  4. Yezidi

    Good on Google. The pressure from many blogs, including TechCrunch, must have gotten to them. heh

  5. Slappenstance

    Nice.

  6. Michael Rubin, Arment Dietrich

    While I still disagree with the idea that the videos that people legally purchased will no longer be available to play (after six months), I have to give kudos to Google for acknowledging their screwup in an open and transparent manner. Many companies try to hide behind silence or spin their way out of a bad situation instead of owning up and giving the digital equivalent of the “My bad.” So add my voice to the chorus of kudos.

    This should be a case study for any company that finds itself in hot water, especially now in the age of instant (and very far-reaching) conversation. It’s a simple three-step process:

    1. Apologize

    2. Own up (humor helps)

    3. Fix the problem

    Simple.

    Disclosure: I have no affiliation with Google apart from being addicted to its search engine and a satisfied user of several of its products.

    —-
    Michael E. Rubin
    Arment Dietrich, Inc.

    Call me — 312-787-7249 x212
    Tell a friend — fight destructive spin! http:///www.spinsucks.com
    See what I’m up to — http://twitter.com/merubin

  7. Zoli Erdos

    I predicted Google would revert the original decision within a day:

    “Because this ignorant move is so ridiculously stupid, will hurt Google’s image so much that I’m sure someone higher up will wake up and revert it before the lawyers have a chance to file papers.”

    Right call, wrong timing. What the hell took Google a week?

  8. Saagar

    The power of user community in the modern blogging world. First Digg acknowledges and now the giant Google itself does.. Is this a sign of Happy Days coming :)

  9. Sean

    Sometimes it seems like a company announces crappy news just so they can turn around and announce something not as crappy and make it seem good.

  10. Greg Spira

    I wrote in the comments last week that I had no doubt that Google would reverse their decision. The bad publicity so far outweighed the money involved that there was no way Google was going to stick with an obviously universally unpopular decision. The videos will still eventually stop running - I doubt Google really has any choice in that, since other companies are calling the drm shots - but Google is now doing more financially than what they had to do in the first place.

    As far as I’m concerned, the real question is who made this incredibly bad decision? The outrage on this was quite foreseeable, and I have to seriously question why anyone who would make a decision like this is in a position to make a decision at Google. I find that most of the criticism aimed at Google is aimed at Google decisions that are perfectly reasonable, though not universally popular. This was very different; the decision was indefensible both ethically and from a business relations point of view.

  11. Andrew

    its kind of late for it..any person who heard that news will be hesitant to pay for Google products in the future knowing that they can always pull that kind of stuff

  12. chall

    In the end this is a good decision. It would have been better if they had made the decision earlier rather than wait and see people’s reaction.

  13. O_O

    So now Google gave me OVER DOUBLE my money back and is letting me continue watching the videos for 6 months?!?! This must be part of some evil plot!!!! Does anyone here believe Apple would give everyone double their money back (or even there money back at all) if they discontinued iTMS? Google did more then enough with the original deal giving me more money then I gave them back after I enjoyed their product. After this, it shows Google is one of the few truly reputable companies that cares about its users first, as that is what they’re selling to the advertisers, they badly need quality users.

  14. Larry Rubin

    Google made me a soothsayer. Too bad no one took me up on the Webvan wager.

    Snap.

  15. David Mackey

    Must agree, very nice job by Google.

  16. BikerDan

    Good.

    They probably realized that no one would ever use their Checkout, or otherwise trust them with their $ again if they didn’t do something to fess up.