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Today in Connected Consumer

Netflix CEO Reed Hastings offered an unusual mea culpa to investors and subscribers freaked out over the recent abrupt price change in a post on the official Netflix blog his morning. “In hindsight, I slid into arrogance based upon past success. We have done very well for a long time by steadily improving our service, without doing much CEO communication,” Hastings wrote. “But now I see that given the huge changes we have been recently making, I should have personally given a full justification to our members of why we are separating DVD and streaming, and charging for both.” Arrogant maybe, but not repentant. In fact, Hastings doubles down on the separation, rebranding the DVD business Qwikster (which sounds like a drive-through oil-change franchise), and holding fast to the price hike (here’s Hastings and new Qwikster CEO Andy Rendich explaining the moves in a video). To me, it looks even more as if the DVD business is being prepped for sale or spin-off, even if Hastings says it’s not.