The New York Times had the story this morning:
“We underestimated the appeal of the single web site and a single service,” Steve Swasey, a Netflix spokesman, said in a telephone interview. He quickly added: “We greatly underestimated it.”Right now, the value of the dual DVD and streaming services lies greatly in this scenario: Search DVD and streaming > available only on DVD > rent DVD.
There's innovation, there's revolution, and there's trying to force more money out of a business model in ways that don't help customers.
Related: The Gap abandoned its new logo less than a week after its debut.