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JakilaTheHun (99.94)

September 2011

Recs

27

Netflix's Management Has Learned the Wrong Lesson

September 19, 2011 – Comments (7) | RELATED TICKERS: NFLX , AMZN , DISH

I’m almost dumbfounded after reading about Netflix’s new plan to split its DVD and streaming services.  A few months back, Netflix decided to end its bundled streaming + DVD plans, charging for both services separately.   For most customers, the new scheme resulted in a 60% price increase.  At the time, my take was that Netflix was trying to divest its DVD segment and believed it could more easily do so by splitting the two segments.  My problem was that I viewed it as extremely unlikely that any potential buyer could get as much value out of NFLX’s DVD segment as Netflix itself would.   [more]

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