“I messed up. I owe everyone an explanation.”
This is how Reed opened a monster of a blog post apologizing for and explaining the logic behind the decision to split DVD and streaming at Netflix, effectively increasing the price for the streaming-only customers. CEO’s, take note: this guy gets it. Netflix is a game-changing company (you can tell by the way the old guard treats it), and that sort of thing starts with the guy in charge.
I could launch into a full-blown analysis of the impact of this decision, what it means for Netflix, Hollywood, content creation and distribution in general, and the overall consumer internet landscape, but Bill Gurley already did that better than I ever could. Read it here.