I was going to write something about Reed Hastings’s inane email, but Wired covered the main point, even if they did bury the lede:
However, it’s impossible to see how the split itself benefits customers. The price and plan changes that flustered many of them months ago remain in place, but the company now directs them to two web sites with two search indexes, two completely separate sets of recommendations, two entries on their credit card statements, and so forth.
When Erik Loomis (now known as the sane political blogger at LG&M) noted the issues with Netflix splitting the company way back in July, there were some objections from the Twitterati that his post didn’t address any of the reasons Netflix had to make the change,* apparently ignoring that markets have to have both a buyer and a seller to function. As “Divorced One Like Bush” recently noted, there are business strategies you can use, and there are business strategies that work against you.
But rarely does one see a company deliberately opt for a business strategy that works against them.**
*One of the more prominent of those is now staunchly defending the company’s latest CF, but did have the decency to quote a respondent: “I admire the umbrage your taking on behalf of netflix and their ungrateful customers.”
**Well, maybe not so rarely, but at least Tyco management made no secret that it was determined to enrich itself at the expense of the companies it acquired and is now spinning off.
cross-posted from Skippy, the Bush Kangaroo