20 Sep 2011
The pivot Netflix has undertaken has been wrought with shortcomings and misteps, none of which are necessarily the pivot itself. The most aggregious is it’s failure to effectively communicate to it’s customers. Apple Outsider outlines just how easy that could’ve been to correct.
That’s why today we’re announcing significant changes to our company. First, we are renaming the DVD by mail business to Netflix Classic. This is the same DVD rental service you’re used to, but it’s more than just a name: Netflix Classic is a new company, operating independently as a subsidiary of Netflix.
Moving forward, Netflix as a company will be dedicated to streaming media. This is a realization of our original vision, and of the company’s name: watching movies over the Internet. The Netflix.com website and mobile apps will exclusively service our streaming library. DVD members will manage their queues at classic.netflix.com.
If you subscribe to both services, you’ll see two charges on your credit card instead of one, but you’ll pay the same total amount per month you do now. This, along with our recent pricing changes, is just a necessary outcome from creating two separate companies. DVD members will of course still receive the same red Netflix envelope that has been familiar to them all these years.