On Mon, Sep 19, 2011 at 1:21 AM, Wesley McGee <[email protected]>wrote:
> This is something a company does when it is flailing. Days after reports > came in that they misestimated what subscriber loss they would have with the > new price structure, they announce what looks to be a panic restructuring. > > http://blog.netflix.com/2011/09/explanation-and-some-reflections.html > I'm not sure this is the accurate spin. The misestimate of subscribers was based on a year ago, not an estimate of loss over the last 2 months. And spinning off a separate service is pretty much the direction they have been going in all summer - putting the two businesses on two different footings, and making it clear that they will live or die primarily with the streaming. What they did not want to be in 5 years is the king of mail order DVDs - to about the last 100,000 people who watch more than 3 DVDs a year. They would rather try and fail to be a real player with streaming, which they see as the future. If, in 5 years, Blockbuster is making a lot of money mailing out DVDs, then Netflix will have been shown to have made a mistake. Hard to predict the future, but I don't think betting on streaming is too stupid. -- TV or Not TV .... The Smartest (TV) People! You received this message because you are subscribed to the Google Groups "TV or Not TV" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/tvornottv?hl=en
