Many people woke up this morning to an e-mail from Co-Founder and CEO of Netflix Reed Hastings apologizing for the lack of communication regarding the price structure at Netflix (not the price hike)
The e-mail started quite plainly.
"I messed up. I owe you an explanation."
I'm not finished with my MBA program, nor does an MBA qualify me as an expert in business whatsoever. However, it's pretty safe to say that the decision to raise prices was probably not a decision that rested squarely on his shoulders. It's nice to see that he is taking ownership.
The problem with his e-mail is that it was a half attempt at an apology. Essentially, it was a "yes-but". He made a mistake? And yet, he's justifying his said "mistake." I don't think many people view streaming and DVDs as a separate business. However, I think I know where he's going with this (which may be completely off base or naive of me to say).. In order to compete with Red Box, I think he's separating streaming and DVDs in order to have two management teams focused on each market segment. I smell a merger and acquisition in the future... Not sure if Qwikster side of the company has the cash flow to buy out Red Box but that would certainly be interesting! Video game rentals sounds appealing to me, but that will definitely have to wait until after I finish my MBA.
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