Netflix has just released a “statement” about further dividing/separating their mail DVD business from the online streaming.
Having used both DVDs+Streaming for many years, I was one of the ones that was OK with the 50% price increase they recently implemented (considering the price of postage and amount of use one can access) – although they did have a massive amount of negative feedback and mass exit from their membership/user base.
This “announcement” is simply a thinly veiled attempt at justifying the price increase, and a horribly poor attempt to edify the alienated or disenfranchised who are still complaining – or have left. The problem is – spilt milk. The hopelessly lost won’t be coming back. This is foolish corporate backpedalling and trying to create a revisionist history with the way it “could have been” – a more politically correct scheme to jack prices on everyone!
In the same grand broad brush stroke, they are trashing a solid brand name by watering it down into two entities. They will only make life much worse for their DVDs+Streaming customers if they try to further separate the two via two different websites, two different accounts/logins, and two different queues.
I’m amazed at the stupidity. This “Reed Hastings, Co-Founder and CEO” has absolutely no common sense, but certainly earns himself 7 figures plus because he is “the boss” and the boss is always right? This is just about as intelligent as HP buying Palm for $1.2 Billion dollars, then shutting it down a year later.
What this statement really ends up saying is – Netflix is in deep trouble. The letter mentions AOL dialup and Borders. Can Netflix be far behind now?
We’ll have to sit back now and watch to see if Netflix/Whatever implodes.