Monday, 19 September 2011

Netflix splits streaming & DVD rental

Netflix raised its prices, which lost it 1m users. The next month their CEO apologised for the poor communication around this, and also announced the split of streaming and DVD rental businesses.

The aim is to let each business have more focus, with a return to marketing of the DVD rental business and an ability for streaming to expand globally and without the constraints of compatibility with DVD rentals. Many user comments on the DVD blog post disagree, but the CEO argues that more companies fail from moving too slowly and trying not to harm their existing businesses as they grow, than fail from moving too fast.

Will be interesting to see what happens.

Original Netflix blog post: here
"1m people unsubcribed" source: Lifehacker

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