Blog Post

ABC, Lovefilm Execs Scratch Heads At Netflix’s Split

Netflix’s decision to divide its DVD and streaming operations is being treated as a joke and a shot in the foot by some observers.

CEO Reed Hastings’ blog post announcement has got over 11,000 comments within 14 hours.

The COO of Amazon’s European Netflix equivalent, Lovefilm, says…


Lovefilm is in the same boat. It must manage down its DVD and game rental business whilst putting eggs in its streaming basket. Both Netflix (NSDQ: NFLX) and Lovefilm have relatively small online catalogues. Lovefilm product director Simon Waldman, who has, quite literally, written the book on how businesses undertake massive transition, says…


Meanwhile, Albert Cheng, the digital media EVP and chief product officer of Disney-ABC (NYSE: DIS) Television Group, which has licensed shows to Netflix, is confused…












First Round Capital VC Josh Kopelman turns back on Netflix CEO Reed Hastings his suggestion that AOL (NYSE: AOL) should split its dialup business in the same way.

One Response to “ABC, Lovefilm Execs Scratch Heads At Netflix’s Split”

  1. Freddie Fillers

    All the
    crazed chatter about Netflix is Much Ado About Nothing. What we have are two
    sides of a coin. On one side, the passionate users who ultimately fear that
    their beloved, convenient and trusted service will become out of reach or go
    away. Then who do “we” conveniently stream popular content from; in
    an all-you-can-view for one monthly charge? On the other side of the coin, a
    strong business leader who wants nothing more than to continue growing his
    enterprise while acknowledging that the first stage of his business model has
    shown signs of flat growth. He has a clear vision of where he wants the
    enterprise to go. That’s why the name has always been Netflix. He is doing what
    he is supposed to as a strong business leader. He is acknowledging the area in
    need of improvement and allowing for focus by making the problem component its
    own business.

     How to fix it? Don’t pay for the existing “quickster”
    Twitter account and let the weed lovin’ guy who spouts off on it entertain
    himself and generate free interest in Qwikster. It’s not a case of there being
    no such thing as bad publicity. In this case, the lampoonish nature of the Twitter
    situation will entertain and keep the reconfigured version of the disc rental
    arm relevant. Right now, it’s more important to address the customer interface
    experience issues. Hire some smart software engineers to find a way to
    integrate the two separate businesses behind the scenes to fix the customer
    content review issue that does not register across the two separate services
    and engineer a way to link the payments interface to collect from users who
    want disc and stream together and report separately for the business.