Friday, September 23, 2011

Netflix Follow Up

Netflix is splitting up into two brands. One for DVD by mail. One for streaming. A great idea.

Wait for it... BUT. They mess things up worse. The bad idea is what they're doing with the brand names. They are moving the Netflix name to the new streaming service and adding a new one for an old concept. So Netflix, as in red envelopes in your mailbox, is going to become the name for the company that streams movies online. And the new brand, Quikster, is going to take its place with the old concept. Got all that?

A new concept (streaming) needs a new brand which includes a new name - not a well known old one. But then they toss in a terrible new name for that product and you have a strategy disaster at Netflix.

Incredible.

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