Earlier this morning Netflix CEO Reed Hastings posted a public appology about the recent restructuring of their services and to announce that their DVD and Streaming services will be split up into seperate businesses.
Personally, I'm sitll not happy about the price hikes that Netflix announced a couple months ago, their goal is to get people moved to streaming versus DVDs, but yet lack a good incentive to actually do so. In my household we decided to drop down to just the DVDs, we love streaming but the amount of streaming content simply doesn't compare to that of their DVD selections. If Netflix had come out and said they have been able to move most of the DVDs to streaming, then streaming would have been an easier choice. Instead what happened is that they annouced that Starz wont' be renewing their contract so now even more content will be unavailable.
Jump to today, Hastings announces that they are splitting up their services, they are creating Qwikster.com to handle all the DVD and now Games service. WHAT? Not only that, but it's a totally seperate account, different list of movies, different billing, different login area, everything is different from the streaming side.
Complexity for no good reason
What happens if we decide to add streaming back into our account? Do we have to go to both sites to maintain our accounts? - complexity
We will have two billing entries on our statements if we use both services. - complexity
How about tech support? - complexity
They are creating two fully seperate teams to manage both services - complexity
Pissed off users who were loyal. - complexity
More choices, more options, more profiles - more complexity
I'm sorry, but if your goal is to get people OFF of using DVDs, then you don't go out and make a new company around the service you are trying to kill off. It doesn't even make sense. Netflix was one of my favorite companies, it seemed like they had their heads on straight, offered great service, great price, great technology. Now, I despise them. I have tried to brush it off, but I can't I seriously can't stand them right now.
Most companies destroy themselves, so far Netflix is on that path.
Full Source: An Explanation and Some Reflections
:: Micah