Love Kept Them Together – Netflix Won’t Split

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 Netflix CEO, Reed Hastings announced that the plans to split their DVD distribution business into a separate company (Qwikster) has been cancelled because of customer feedback. While I’d love to believe that the many emails and articles like this one were the reason for the reconciliation I believe it may also have involved Amazon’s recent activities.

Perhaps, someone at Netflix asked that all important question, “Why are we going to spend hundreds of thousands of dollars, de-value our brand and disrupt a successful operation?”

There was no logical answer and Mr. Hastings has elected to change his mind. I guess that’s just a CEO’s prerogative.

Whatever the reason…one website, one search, and a lot more than one happy customer!

2 thoughts on “Love Kept Them Together – Netflix Won’t Split”

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  2. @GS, I know I’ve made light of the goings on at Netflix…this is good news for customers in the short run and mostly indicative of some really bad things happening at the company.

    Seemingly, Netflix has been a pretty well run company. They’re distribution system (DVDs) is pretty good and the quality of the streaming has also been good. Until recently there have been a few issues, but mostly the company has made many solid moves and became the leader in the industry.

    So, what’s going on now? Are they facing the demise of DVDs and in a panic? Do they have people on the board or on Wall Street pressuring them to make moves? Something is amiss. Worst of all after badly rolling out the price increase they did it again with this split…and now the email from the “Netflix Team” cancelling the split has the insane line:

    “While the July price change was necessary, we are now done with price changes.”

    So, Netflix is never going to change prices again? Is anyone reading their announcements before they press send?

    I have a feeling there’s more to this story…something is breaking down at Netflix and these may only be the cracks in the dam.

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