Netflix: Two Companies, Double the Headaches?

Netflix, the giant mail-delivery DVD service has decided to split into two businesses, Netflix would now only offer streaming service, while the new company "Qwikster" will deal with the mail in DVDs. This is coming after a previous Netflix decision to charge $7.99 for the streaming service and another $7.99 for mail in DVDs which angered many customers as they loved the previous deal of $9.99 for both services. Netflix again has angered its customers with the split into two companies. The reason for the split was the reasoning that streaming movies was the way of the future as described in a Netflix blog by Reed Hastings, the Co-Founder and CEO of Netflix. The failure to advance with technology and new products can doom a company like it did with Blockbuster and that is what Netflix is afraid of. While the reasoning of the split makes logical sense, what does not make sense is separating the powerful company of Netflix into two companies, one of which in my opinion has a horrible name, Qwikster which is already taken by a guy on twitter. By changing the name of the company, they are losing the association of Netflix and its reputation. What made Netflix so great was that it offered both streaming and mail in order DVDs. The streaming DVDs provided for the quick fix, while the mail in order DVDs offered a bigger and better collection of DVDs than its streaming counterpart. The splitting of Netflix loses that appeal and may decrease in sales as the consumer taste has changed. The split also harms the consumer as they now have to sign up for two different companies if they want both services unlike the past $9.99 plan. So while the reason for the split is sound, many of Netflix's customers are upset and may stop paying for the service. Only time will tell if Netflix has made the right decision to split into two different companies.