

Netflix reverts from Qwikster split - speedracr
http://blog.netflix.com/2011/10/dvds-will-be-staying-at-netflixcom.html

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DiabloD3
Honestly, this is how a company should actually be ran.

They made a boneheaded decision, everyone called them on it, and they bailed
on the decision and went back to the way things were.

Now, they should have actually sent a customer survey out before hand, but
hey, they can do that next time.

~~~
Gormo
But 180-degree reversals are a potential signal that the company doesn't have
a coherent strategy, or that management doesn't really understand their
market.

Not really a problem in a highly autonomous firm, but I'm surprised to see
this in a publicly-traded company like Netflix. Seems to have have worked for
them, though.

~~~
phren0logy
So they should just stick with a very unpopular decision? I think that when
(inevitably) mistakes happen, taking one on the chin is the best option.

~~~
Gormo
I'm not saying they should stick with an unpopular decision at all, just that
the typical publicly-traded company would be highly likely to do so in order
to avoid being perceived as incoherent or disorganized.

Netflix painted themselves into a corner here, and had no easy way out. Other
companies would have chosen a different solution.

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sschueller
This makes it worse. It means there wasn't an underling cause important enough
to split the company. Like licencing deals or possible acquisition that
couldn't be disclosed etc.

~~~
ensignavenger
I would not doubt if they still split the company internally. They can have
one website, one billing department, etc, but still have 2 internal companies.
One company (probably the DVD business) just pays the other one for the
services rendered (website, billing...)

This way, it is not a total reversal, just a reversal of the customer facing
changes that were generally disliked.

~~~
dsl
The company has already been split internally for a long time. It's called
different business units, and lots of companies do it.

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9999
Changing your mind is a sign of intelligence. I can see how it would have made
sense to them to separate the companies, and I think in 5 years or so, that
will make sense. I hope they still do the console game rental service that was
going to be a part of qwikster, although that's a dying model too.

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damncabbage
How to make unpalatable decisions:

    
    
      1) Make two bad decisions.
      2) Go back on the first.
      3) Hope nobody notices you didn't go back on the second.
      4) Praise.

------
smoyer
Another on-going discussion is here:
<http://news.ycombinator.com/item?id=3093450>

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darien
sanity prevails.

~~~
zecho
I grew up with a bi-polar dad. Netflix's actions lately reminded me of that
for some reason. I expect we'll find Reed Hastings sleeping naked on the front
porch soon.

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saturn
Shouldn't it be "Netflix reverts Qwikster split"? I don't "revert from" a
misguided commit, I revert it.

I do like the metaphor though.

~~~
speedracr
I always hear it as "reverting from something back to something else", but I'm
not a dictionary. Then again, I should have chosen a more gripping title,
anyway :). "Netflix: Qwikster is history!", "Netflix admits: We don't know
what we're doing"

