Netflix

I wish to make a few comments regarding the recent Netflix news flurry surrounding the recent changes. So the latest is that Netflix is separating the streaming and DVD offerings. From what I've read and understood, the main reason for this is to allow for Netflix to continue offering a great service at a more sustainable price. The contracts that Netflix must negotiate to gain rights to make content available requires a lot of money and pressure has been put on Netflix to act.

There is a lot of user hype around the decision to raise prices and separate the physical and streaming content. I believe this is just a temporary thing because people don't like change that negatively affects them in the short-run.

I believe Netflix has actually made a smart move to put their business in separate profit pools; namely streaming and DVD sales. It has allowed them to target the people that want just streaming, just dvds, or both. They will then be able to push deals for each market separately. In addition, they have introduced video games in to the mix. This provides competition with GameShark, an existing game-rental service currently popular. I believe this growth and division will allow Netflix to better find where the profit pools are and more aggressively negotiate with the entertainment industry to push for better content.