Sunday September 25, 2011

Did Netflix Create Qwikster Just to Sell It?

Business analysts are donning their tinfoil hats and going down the conspiracy path with Netflix. Perhaps Netflix is looking for a convenient way out of the DVD rental market by splitting Qwikster off into a neat package and selling off its DVD rental business. Taking into consideration how rapidly the changes took place over at Netflix, this assumption begins to make sense.

"The separation of online streaming and DVDs will set the stage for spinning off or selling the DVD business in the future," George Askew, an analyst with Stifel Nicolaus & Co., told Bloomberg News.