Netflix caved in and apologized for their arrogance in a lengthy email. It was too little-too late and shows the dysfunction that the company is going through. This was an attempt to explain their side disguised as an apology.
The purpose was mostly to explain how they are splitting the DVD by mail service from the instant streaming service. This, in my semi educated opinion is a horrible idea. Companies spend billions of dollars on their name recognition. Most companies want all of their products to be under one highly recognizable brand name. Hell, even athletes and celebrities market themselves as a “brand”.
Remember Napster? Friendster? Now we will have… Quickster? A crappy name for a crappy decision.
Everyone agrees that the way we get our home entertainment is evolving dramatically. Streaming content directly into homes is the future. However, if you live in a rural area without a decent internet connection, you will still have the DVD option available. Both business models can grow if managed properly. Making two companies or worse, spending money on promoting two brands is a mistake.
People weren’t pissed that the service was split into two separate payment plans; they were pissed because prices were raised for the second time in 6 months without adding value.