The internets are abuzz today with the announcement that Netflix is breaking off into two companies. The DVD delivery side will be called Qwikster and the streaming side will be called Netflx. If you subscribe to both you will have two charges on your credit card. It seems risky to me. Streaming content is still very limited when I can go to a Redbox at get the movie for around a dollar. Netflix has had a rough couple months. Raising prices and losing the rights to content was a huge blow. Netflix is been trying for awhile to be a streaming only business. The problem is streaming is not cheap. The infrastructure and high royalty payments make it difficult to make money without passing it on to the customer. I normally embrace technology and I am the first one to jump on the bandwagon, but I still like watching an old-fashioned DVD. (yes DVDs are old-fashioned). Netflix is a company that is trying to grow way too fast. They need to slow down not forget what got them to where they are. It is important companies keep up with technology and move with the industry, but they need to be careful not to change what works.

p.s apparently Netflix had to buy the Qwikster twitter name from a dude who used the name to promote his excessive weed use.


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