Monday, September 19, 2011
In a statement to subscribers, Netflix's CEO Reed Hastings says the company will separate its DVD business and call it Qwikster. Mark Suster says Hastings should be applauded; Henry Blodget says this is bad for consumers; Linda Holmes reacts; Chuck Tryon reacts and has more reaction; Ryan Lawler predicts Qwikster's future; Tim Carmody lays out different perspectives; like many, Will Richmond is critical of Netflix's decisions. Venture capitalist Bill Gurley says Netflix's recent pricing move resulted from demands from content owners who can make more money from digital rights than DVD (thanks to the First Sale doctrine). Also, Netflix apparently didn't check or didn't care that someone already has Qwikster as a twitter handle, and he doesn't exactly fit the brand. Qwikster will also rent video games. In the comments section of his blog post, Hastings refers to DVDs as "old fogey discs." The Oatmeal tackles the split. Dan Frommer cites 10 things to remember about Netflix through this.