I am having a hard time processing the news this morning that Netflix is undoing their move to spin off the DVD rental business as Qwikster, explaining that they were moving too quickly. While I agree that they may have moved too quickly to split Qwikster and Netflix, I think it is a move that they will have to make eventually; there is too much difference between the customer demographics and cost structures. I think in general if you’re a business that moves too quickly, you should never go backwards (though taking it easy for a while at this point would have seemed prudent). Now Netflix is going to be in the tricky position in a year or two of having to redo something they did and then undid, imagine what the feedback is going to be like on that.





