Dear Netfilx

As many of you probably know Netflix is now splitting into two separate entities, Netflix for streaming and Qwickster for mail DVDs. Now I don't have my own account so this really doesn't affect me too much, but I can understand the concerns. So here is my a letter that I would like to write to the CEO of Netflix.

"Dear CEO,

I am sorry but I have to say that this idea is not necessarily the best one you have had. While diversifying may be a good idea, you also have too look at what your service originally was designed to sell. It wasn't just quick access to streaming DVDs and then a separate service for mail DVDs, it was one service that people loved.

I can understand your worry about becoming like AOL or Borders, but with a unique company such as yourself don't you think your initial market segment couldn't grow if you marketed both services together? Not only will it save you money, it won't look like you are trying to split into two separate companies that would ultimately compete against each other and probably combine into a single company again.

What about the cost of reorganizing the company? Do the benefits really outweigh the costs? If so then I am sorry for this trouble, but if not then please leave this service alone. People are already upset over the price increase and now this? Does this really look like a move a strong company would make? No, it does not. If Apple were to split into a company that only sells computers and a company that only sells iPods it would appear that Apple was trying to sell off assets in order to stay afloat. What you are doing seems like this very concept. 

The last thing I would like to bring up is the e-mail that Netflix sent out. First off all I know that you Mr. CEO did not actually send out this E-mail, it was probably a secretary or and aid of yours. Secondly, do you really think a single E-mail will solve the problem of communication? No, it would be a better idea to set up a forum and get customer feedback and then use that data to inform your decisions. Let the customer perform the SWOT analysis and crowd source the issue rather than stay stagnant and use traditional methods of diversifying. If you really want to be a leader in the business world you have too look ahead to what the Internet has to offer.

Sincerely,
Nick Picard"

After you read this "E-mail" take a second to consider the other side of this argument too. It could be very possible that Netflix is a failing company and is trying to stay afloat by selling off services. While I do not think this is the case it is always something to be mindful of in the economy that we have today.

Until next time...