Netflix’s recent decision to increase rates for its streaming plus-DVD service, then splitting the company in two caused customer ire. But what seemed like a bone-headed move to some, might actually be Netflix CEO Reed Hasting’s genius move. Maybe.
Analysts speculate that the surprising decision to split the company into two distinct services—streaming only, which retains the Netflix name and a DVD-by-mail service, called Qwikster—could be Hastings set-up for a sale to Amazon.com. Michael Pachter, an analyst at Wedbush Morgan, says the purchase would make sense. It would complement Amazon’s existing Amazon Prime service but the company would not be bogged down in sales tax issues that the purchase of Qwikster could bring.
Still, there is one thing analysts have not mentioned: How would the streaming service fit into Amazon’s e-reader plans? Will Amazon now go “Hollywood“?
Read more at Boston Globe.