Netflix Pulls Back on Plan to Split Mail, Internet Services

By Erin Harrison October 11, 2011

Netflix is reversing a course that would have split up its DVD-by-mail and Internet streaming services, as media reports indicate that the company will now keep the two services on a single website.

Earlier this year, Netflix announced it planned to separate the two services, but a combined outcry from both consumers and investors apparently were heard so loudly that the company shifted gears.

“Customers had complained loudly that the plan would have made it more difficult to watch movies. Investors hated it, too,” the Associated Press reported Tuesday.

Netflix said in a Sept.18 blog post that its DVD-by-mail service would operate at Qwikster.com, at which time Netflix CEO wrote, “Companies rarely die from moving too fast, and they frequently die from moving too slowly.”

But Hastings decided the move was too hasty after all.

“U.S. members will continue to use one website, one account and one password for their movie and TV watching enjoyment under the Netflix brand,” according to a company statement issued Oct. 10.

But the drastic change – and several others in a relatively short period – has evoked questions about the company’s management style, even becoming fodder for Saturday Night Live skits and targets for disenchanted customers on social networks.

While “Hastings had always seemed to possess an uncanny touch,” the AP said, “…The series of missteps has stirred doubts about his leadership at a time when the company faces wrenching industry change and ferocious competition.”

Hastings issued a mea culpa this week, noting the difference between “moving quickly” and “moving too fast.”

“There is a difference between moving quickly – which Netflix has done very well for years – and moving too fast, which is what we did in this case,” Hastings said in a statement.

Netflix informed its U.S. members of the change in personal emails on Oct. 10 and a post on the Netflix Blog.

Last month, Netflix announced it was lowering its U.S. subscriber expectations for the third quarter because it anticipated customer losses relating to the company’s split in July of its DVD and streaming options (which effectively raised prices for existing customers who both receive DVDs by mail and use the streaming option), TechZone360 reported.


Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Carrie Schmelkin

Executive Editor, Strategic Initiatives

SHARE THIS ARTICLE
Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More