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Jon on CNBC Talking Netflix & Qwikster

2011-09-19
so she touched on some big issues all right let us bring in now our guest if we certainly can that is techno buffalos jon rettinger John you just heard herbs a rant on netflix sort of hitting everything from disclosures to strategies you got a beef with netflix you know the guts our reaction is certainly to agree with her and i think a lot of folks at least right now and do however in hindsight I think what Reed Hastings did is actually going to be a very prudent for the business the writing is all over the digital wall physical media is dying and Netflix's name is squarely implanted in association with that physical media if that dies the subscription-based continues to fall so does the netflix brand equity they are severing ties right now while we have a chance to spin off as completely separate quick store business which is also going to include video games while also continuing to grow that netflix brand while focusing solely on digital so bottom line here netflix as it might remain right forget Qwikster just streaming is it going to be a better company I mean is that the goal of doing something like this to get stronger is it going to work long term is going to be a great business decision for netflix the timing though as her mentioned is atrocious there in the middle of huge contract negotiations with major studios to get content so why they would choose to do it on at a night time on a blog is completely mind-boggling you know because it's it's a smoke and mirrors type of thing it doesn't change anything right now it all it is is it creates the impression something's gonna happen maybe they will ultimately split spin off the DVD business and try to recreate what they started with when Netflix I suspect that's where they're going but who knows you know I would assume so essentially at Netflix is doing is they're holding up the their piece of business and they're cutting off the fat or what they think is going to be the fat in the next few years so herb I mean what should you what's your final take on this because I'm kind of coming away they can my take it on saying it's a great company I mean they're bashing man on oh look they execute they did what they had to do I suspect to get rid of the bad stuff allegedly the bad stuff but you know what the dvds are still an important part look not you know they still have the fixed cost no matter what they do this still the old legacy Netflix as part of this entire play what Netflix and John and we don't have time to get into jon rettinger thank you very much for joining us we'll get you back by the way confirming what the skeptics said about the
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