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Netflix Split September 19, 2011

Posted by Conrad Hubbard in : The Chip , trackback

Maybe they are doing this for publicity, in which case I guess they are winning. However, I do not understand the decision that Netflix has made to intentionally spin off their DVD division into some other company. For people who get both services: streaming and mailed DVDs, this seems like a reduction in ease of use. Having your queues, billing, customer service, etc all split up onto two different websites seems inconvenient. At very least, imagine having to login twice just to check the same stuff you logged into once. Netflix argues they are doing this to be better and more competitive with other streaming services. It seems to me that one way they could brand themselves as better would be to advertise that they also offer this huge DVD service in addition to their streaming one. Strange stuff. Maybe it will work for them, but I don’t see how, and I don’t look forward to the extra logins and credit card entries.


1. Conrad Hubbard - September 19, 2011

Actually, now that I have posted this, I have a thought as to one possible reason. Maybe they just want to sell off the DVD division at some point, to somebody who thinks it is worth it. By building a new brand, and severing the ties to their original brand, perhaps they are creating a corporation all packaged up to unload onto somebody else. Then they can use the cash to boost their main brand while potentially watching the spinoff die in somebody else’s hands.