Updated: 4:50 p.m. ET

By Jeff Reeves, InvestorPlace.com

Netflix (NFLX) critics have been very vocal since the company's Sept. 1 move that would have separated its streaming video from DVD rentals. And it has been one wild ride for NFLX in recent weeks.

First we learned that 1 million Netflix customers defected because of the changes. Then Netflix CEO Reed Hastings stumbled through an apology and the company tactlessly revealed users would have to suffer through two websites with two billing accounts if they wanted both streaming and DVD service. The backlash was big, and shares went from more than $300 in July to as low as $108 recently.

Post continues below video:

As in a B-movie lab experiment that goes awry, wreaking havoc on small-town America, this Netflix debacle is not so easily resolved.

Yes, some people may think it's a victory for consumers. The company previously said its DVD-by-mail service would operate via a separate website, Qwikster.com, but now that plan looks to be dead in the water. Hastings released a statement that said, "Consumers value the simplicity Netflix has always offered and we respect that." Netflix shares were soaring as much as 10% in early trading.

• Related: 10 dead or dying brands Netflix can learn from

Here's why it might not help:

Some subscribers are gone for good. Keep in mind that of the million customers lost, most came from the DVD side -- from a projected 3 million to 2.2 million. If Netflix thinks it can just promise to keep the DVD rentals in-house and win those customers back, it has another think coming. Many consumers complain that Netflix offers a poor library of new releases -- just look at the current Top 100 movies shipped, and you’ll find The Blind Side from 2009, Crash from 2005 and TheBucket List from 2007 in the top three spots. Not exactly recent hits. The fact is many mildly dissatisfied customers sometimes stick around out of laziness or complacency. Once they’re gone, however, they need more than the status quo to return.

DVD business publicly revealed as disposable. Many folks had speculated that the biggest reason Netflix was going down the Qwikster road was to prepare the company for an inevitable spin-off. Hastings admitted that his "greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming" and that "DVD by mail may not last forever." After treating your customers so carelessly and making those harsh statements (however true they might be), how can the movie-watching public ever feel like you truly care about their business -- or, more importantly, that you will truly ever listen to future complaints?

• Related: Should Apple pull at Netflix and kill the iPod?

Netflix's poor leadership exposed. When Netflix revealed a dual-pricing model to combat the rising cost of streaming, many folks thought it was no big deal. Unfortunately, the move failed to properly measure consumer dissatisfaction. Adding fuel to the fire was the tactless divulgence that Netflix was going to demand consumers suffer duplicate log-ins and billing for the separate services, and the resulting "apology" from its CEO that was more self-justification than anything else. Now we have the eventual back-tracking six weeks later. Who the heck is steering this ship? And more importantly, the next time Netflix has to make a crucial strategic move with its business -- and it will very soon with competitors like Amazon (AMZN) and Apple (AAPL)rapidly growing their streaming video businesses -- how can anyone trust NFLX leadership to do the right thing? And by the way, amid this mess we learned that Netflix will lose its Starz titles in January, accounting for 8% of its total streaming library. Not very encouraging to the streaming-focused growth plans of this company.

Sorry, Netflix, but this monster has already gone on a rampage, and it's not as simple as calling him back inside. It's going to take a an army of PR workers with torches and pitchforks to tackle this beast -- and many months of vigilance to ensure there isn't a sequel to this disaster and the damage is fully repaired.

Jeff Reevesis editor of InvestorPlace.com. As of this writing, he did not own a position in any of the stocks named here. Follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook.

• 5 CEOs who think like Steve Jobs
• T-Mobile may already have 1 million iPhones
• 3 iconic brands destined for the trash heap