Under a month ago, Netflix announced that it would split up its movie renting service from the streaming service. With this division, DVD rental services would have been shifted to an entirely new website, known as Qwikster. Customers paying for the combined price of both DVD and streaming services would have had to pay even more to remain subscribed to both services. Personally, I think that the division of services would make it inconvenient for subscribers to access their services separately, which would be areason for them keep Netflix unchanged.

By getting rid of Qwikster, Netflix has finally become aware of how elastic the demand for their services truly is. It has lost well over a million subscribers because of their change in price. Customers felt as if they were getting ripped off and cut their services immediately. Netflix may have had the right intentions of trying to separate the brand name from the aging DVD business, but customers perceived it as Netflix trying to increase their profits. By changing their decision to split the services, I believe that Netflix definitely made the right choice before losing a large number of subscribers.

Article: The Globe and Mail

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