Netflix and the “Framing” problem

So I’ve been wondering why the Netflix company split seemed like such a poor execution of a good idea. Logically, I get that it’s two different businesses that need to be supported differently, but I still cancelled the physical DVD service today. I think I figured out why it bothered me.

First, Netflix gave me more than I ever imagined when they launched free streaming. (At this point I love Netflix)

Then, Netflix upped their rates, but I was ok with it because they were giving me more of what I wanted. (I didn’t really mind…I was using the service)

Finally, they split the company in two and offered to bill me individually for two services that served the same need. (Now, I’m insulted b/c they expect me to pay to different bills for the same service…I know it’s the same price, but emotionally it feels different.)

There just feel like so many other ways to ease in to this. As the split is announced you could…
- increase the number of DVDs in rotation with the physical service
- expand the titles in the streaming service
- announce a special partnership for the streaming component
- add a pay-per-view component for streaming new-releases (competing with iTunes)
- add deeper content integration with online streaming
- start randomly shipping free microwave popcorn with the physical DVDs
(I know they added video games to the physical DVD mailing, but they’re about 6 years late to that party…and that’s more off-mission than streaming movies IMHO)

…you know just do ANYTHING besides billing my credit card twice for no additional benefit.

The decision just seems so out of character…the company who harnessed device convergence to deliver the future in streaming/anywhere entertainment can’t figure out how to issue one bill for the services it provides? Like that’s going to send it’s internal business into bedlam? I mean even the phone company can manage to bill me for my phone and my DSL.