Very interesting take from a former Netflix insider…

Ex Netflix CEO wrote a piece on the recent pricing debacle here. At first sight, doing both streaming and DVD does not seem that complicated. But apparently it was, according to the ex CEO.

I am still not convinced about this move. There’s no doubt streaming is the future, but I can’t understand why Netflix cannot just do both. An user can have 3 options: streaming only at $8, DVD only at $6, and streaming and DVD at $15. The current flow on the site seems okay: two separate queues, DVD and instant. Users cannot add movies to queues of services that they are not paying for. Or they can add movies to the queues, but they will only become active once paid for. I am a current user and completely okay with the experience.

By separating DVD and streaming, Netfix loses customers who are interested in DVDs. It’s a hassle to have two accounts, one for Netflix and one for Qwickster. Why not keep these DVD customers and convert them to streaming once more content is available?

Nevertheless, I commend the CEO for taking bold action to move forward to the future. It’s precisely because of the uncertainty (possibility of a backlash like this) that deters companies from taking necessary and timely actions to account to changing market landscape. Netflix is very bold, and it MAY pay off for them.

I am just not really buying the focus argument. To me, I am still not clear why separation is that much easier for both the users and Netflix.


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