n Mon, Sep 19, 2011 at 2:20 AM, Wesley McGee <[email protected]> wrote:
> > I'm not sure I agree or disagree, but the optics of this is horrible. This > is an announcement he made on Sunday night. How many businesses make major > announcements on Sunday night? It comes four days after the stock collapse > (from the reported variance between expected and actual subscribers, whether > the estimates came from last year or no). This could all be right in the > end, but the way they get there is worrisome. If he intended to the business > off from each other, why did he not announce it when he announced the price > increases? > > This does not sound like they are embarking on their planned strategy. > Maybe they're rushing it, which seems to be an even bigger mistake. I can > see this announcement driving people to the perceived stability of Amazon or > others. > Well, I don't mean that they always planned to announce a split service/name on a Sunday night. I just mean that they have steadily been moving towards separating the two services - and putting them on distinct financial footings. What I think that last part means is that the want the DVD mail order business to basically pay for itself, and they want to be free to invest heavily in the streaming side. I don't know how this will work out for them - the point is that they are placing a bet - a pretty big one. I think it is a mistake for people to assess the streaming service based on what is currently offered - worse yet on what is currently offered minus Starz in a few months. Everything they have done so far is to allow them to make major online acquisitions over the next 12 to 18 months. If we are talking about a Netflix in January of 2013 that still is distinguished mostly by streaming old tv shows and some quirky films, then there will be no doubt that they have failed. This only works if over the next 1 to 2 years they are able to get a couple of big deals with major content providers. If they do become one of the main streamers of major films and new television programs, they won't care if they pissed off a tens of thousands subscribers in the summer of 2011. If they don't - they also wont care if they pissed off tens of thousands of subscribers in the summer of 2011. -- 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
