Netflix Lost 800,000 Members With Price Rise and Qwikster Plan

The New York Times (Oct 24 2011)

1. Reed Hastings was soaking in a hot tub with a friend last month when he shared a secret: his company, Netflix, was about to announce a plan to divide its movie rental service into two — one offering streaming movies over the Internet, the other offering old-fashioned DVDs in the mail. Enlarge This Image Justin Sullivan/Getty Images Reed Hastings said that he had been guilty of overconfidence and of “moving too quickly.” Enlarge This Image Paul Sakuma/Associated Press Netflix, in Los Gatos, Calif., says it still thinks its future lies not in DVDs but in streaming over the Internet, but not quite yet. “That is awful,” the friend, who was also a Netflix subscriber, told him under a starry sky in the Bay Area, according to Mr. Hastings. “I don’t want to deal with two accounts.” Mr. Hastings ignored the warning, believing that chief executives should generally discount ... (Read Full Article)

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