It looks like the Netflix price hike has hurt the business so badly, that the company has to break into two!
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Netflix CEO Reed Hastings has admitted the company lost way more customers than expected and they decided to split Netflix by creating a new DVD by mail only company called Qwikster.
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Hastings wrote: “It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology.” He went on to announce that Qwikster — the name is chosen “because it refers to quick delivery” — is becoming its own entity because “we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently.”
The move comes on the heels of an overwhelmingly negative reaction to Netflix’s price hike in July. This week, the company announced it had lost many more subscribers than expected, and its stock price fell accordingly.
What do you think, will you purchase DVDs from this new company? Are we still mad at Netflix?
SOURCE: Huffington Post
