Expect Netflix to Sell DVD Division
Written by: Rocco Pendola
Tickers in this article: NFLX
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
Netflix Q2 Letter to Shareholders, July 2011:
UBS Global Media and Telecommunications Conference, December 2011:
NEW YORK (TheStreet) -- In case you have had trouble keeping up with the on-again, off-again love-hate relationship Netflix(NFLX) CEO Reed Hastings has with the DVD, let me recap it for you.
In addition to separating the plans, we are setting up a dedicated DVD division, led by 12-year Netflix veteran Andy Rendich, to focus on running a successful DVD by mail service in the U.S. for a long time. Andy and his team will be located nearby in San Jose, and are already planning some great improvements for the DVD service. Because we believe we can best generate profits and satisfaction by keeping DVD by mail as a division, we have no intention of selling it. In Q4, we'll also return to marketing our DVD by mail service, something we haven't done for many quarters. Our goal is to keep DVD as healthy as possible for as many years as possible.
DVD will do whatever it's going to do. We're not -- we're going to try to not hurt it, but we're not putting a lot of time and energy into doing anything particular around it . . . .