On Monday, I received an email from Reed Hasting co-founder and CEO of Netflix. The email was a mass publication responding to the less than ideal customer reactions to Netflix's new pricing strategy.
Hasting introduces the email with; "I messed up, and owe you an apology." I have an appreciated for people who can admit to making mistakes. So, I approach Hastings letter with an open mind; curious about his reasoning.
As I read through the letter I could feel my head shake in disagreement. Hasting's decided that streaming video content and renting DVDs are two completely different products and there for should be two different businesses. The decision Hasting decided on: LETS SPIT THE COMPANY!
DVD renters will continue to rent on line, through a new site, qwickster.com. Streamers will continue to watch on line through Netflix.
In my analogy, Netflix (online streaming) is the crazy trophy wife who is taking her husband to curb for all he's got. "Quickster,"The original concept of Netflix is the loser husband who has just been played.
In irony, neither of the services are likely to come out clean. The amount of cash spent, and continuing to be spent/lost in this nasty divorce is astronomical. As a customer, I don't want complications- I want consolidation of services. I want easy one click access to either streaming or renting. I think by separating the services Netflix is loosing focus of their mission statement and organizational objectives.
On Tuesday, after Reed Hastings announcement, stock fell another 10%. Obviously, I am not alone in frustration towards Netflix.