All the television commercials with that familiar red background advertising online streaming for only eight dollars per month will change. Netflix has recently announced the separation of businesses between their online streaming business Netflix, and the DVD-by-mail business Qwikster, Susan Krashinsky writes in The Globe and Mail. After this announcement, many Netflix customers have chosen to discontinue their services. Netflix has taken a risk to increase their prices and to separate their original services into two businesses, creating inconvenience for their customers.  Krashinsky cites a Netflix representative who publicizes a significant decrease in not only the number of consumers, but also a large decrease in the company’s stocks. These dramatic declinations have astonished and possibly have traumatized the company executives.

Netflix has made a bold decision and perhaps, did not consider the outcomes beforehand. This article reveals how a stable company like Netflix can experience a devastating change after one decision. Whether Netflix can return back to their original sales is unknown. In the short-term, the company appears to have made an incorrect decision; however, in the long-run, Netflix and Qwikster, may possibly become more successful after their separation.

Susan Krashinsky’s article: “Netflix offers a mea culpa- and a Defence”