<http://schema.org/articleBody>
"Netflix backpeddled Monday on its highly unpopular decision to split Netflix into two companies. Qwikster, the service that would have delivered your physical DVDs going forward, will never see the light of day. Netflix remains one company with two major businesses: Streaming videos and shipping rented DVDs. \nIt\u2019s a fairly good mop-up job by Netflix founder Reed Hastings. But that only proves Hastings is qualified to be the company janitor, not its CEO.\nI saw Hastings speak twice this year: once at  the annual Leaders in Tech dinner at CES in Las Vegas in January, and then again at  the D9 summit in California. At CES, Hastings was at his apex. Netflix was bigger than ever, and was riding the wave of unprecedented streaming content delivery growth. Hastings heaped praise on FCC chairman Julius Genachowski for pushing through a Net Neutrality plan that would help protect Netflix\u2019s streaming movie business. During an on-stage chat with Arianna Huffington, he said he\u2019d likely be around as Netflix CEO for another decade, though he often fantasized about working solely on his other true passion: bringing an incredible education to all the world\u2019s children. It was a pretty inspiring performance by one of the tech industry\u2019s rising stars.\nSix months later, things were still going pretty well for Netflix \u2014 but there was trouble brewing in the wings. Hastings admitted that delivering good quality streaming content to Netflix\u2019s growing number of streaming customers would cost a lot of money. He groused about growing complaints from users that they couldn't find anything good or particularly new to watch on Netflix streaming. His response: You \"can't have all the new stuff and have the $8-a-month price we have,\" Hastings said. \"We don't have everything ... Apple and Amazon are very good at being comprehensive.\"\nHastings did promise a firm commitment to the DVD business \u2014 but also revealed that it would eventually go away in favor of an all-streaming business. \n\n\nSEE ALSO: Dear Netflix CEO: We Accept Your Apology. Love, DVDs\n\nA few weeks later, CNN Money revealed that Netflix was having a hard time negotiating with studios for continued access to the current movie selections. The service was blowing past usage caps set by studios. As far as I could tell, Netflix was getting nowhere signing new partners. The breakdown of the Starz deal made it clear Netflix was in trouble. Still, Reed Hastings had proved himself an adept leader and I felt certain he would find a way to ride this out. \nThen things got weird.\nA day after I wrote a piece entitled \u201CIs Netflix Doomed?\u201D, the company announced a new pricing matrix that effectively doubled rental and streaming prices for most customers. A once-combined service package was split into two separate fees. Hastings clearly had a hand in this decision. I believe he did so to generate cash for some of the content deals he hoped to make in the coming months. Starz came back to the table, but the deal eventually imploded anyway.\nThe new pricing scheme took effect on Sept. 1. On Sept. 2, I decided to drop half the service, the physical DVD part, and continue with streaming. I was not alone. Countless other customers either did the same, or walked away from Netflix. Hastings, who once seemed to anticipate consumer needs before they knew them themselves, developed a tin ear. Three weeks after the price hike, Hastings apologized to customers in a blog post and then proceeded to make things worse.\nInstead of coming up with a more palatable pricing scheme, Hastings cleaved Netflix into two businesses and introduced Qwikster as the new physical DVD business. It was a move met with almost stunned disbelief. Hasting had pulled his foot out of the mud and stepped into quicksand (or qwiksand, if you prefer).\n\n\nSEE ALSO: Qwikster From Netflix \u2014 the Worst Product Launch Since New Coke?\n\nOver the next few weeks, Netflix did announce some new content partnerships that would bring streaming customers a variety of new cable TV shows to choose from. No new theatrical films though. At this point, even the studios seemed to have tired of the Netflix nonsense.\nSadly, Hastings wasn\u2019t done yet. Less than a month after birthing Qwikster to a disinterested public, Hastings pulled the plug. He penned another apologetic blog post, under which a multitude of commenters proceeded to rip him a new one.\nAs you might expect, Netflix stock has been hammered all along and didn\u2019t fare much better today. \nThe signs are all there. Reed Hastings is done at Netflix. In the space of a summer, he's done all the damage one CEO could do in a lifetime. I do not think he\u2019ll realize his dream of hanging in another 10 years. In fact, at this point, I\u2019m not sure Netflix can last that long.\nSorry, Mr. Hastings. \nBONUS: Chronicling Netflix's Downturn, July to October 2011\n\n\nChronicling Netflix's Collapse\n\n\n\n\n\n\n\n1. Netflix Stock Hits All-Time High\n\n\nJuly 13, 2011\nNetflix stock more than doubled over the previous year, then increased by 15% in May to reach its last all-time high in July of $300.\n\n\n\n\n\n\n\n\n\n\n\n2.. Netflix Price Hike Takes Effect Today\n\n\nSept. 1, 2011\nNetflix cancelled its $9.99 combined streaming and DVD plan and separated the services into two separate $7.99 plans.\nPhoto courtesy of Flickr, matthew393\n\n\n\n\n\n\n\n\n\n\n\n3. Netflix Has Lost Half Its Value in Two Months\n\n\nSept. 19, 2011\nThe stock dropped 50% from its July 13 all-time high.\nNetflix Price Stock Chart by YCharts\n\n\n\n\n\n\n\n\n\n\n\n4. Netflix Apologizes to Customers &amp; Rebrands Its DVD Service\n\n\nSept. 19, 2011\nNetflix CEO Reed Hastings introduced Qwikster, the company that would take over its DVD service.\n\n\n\n\n\n\n\n\n\n\n\n5. Netflix Abandons Qwikster DVD Plan\n\n\nOct. 10, 2011\nRecognizing that Qwikster would end up \"making things more difficult\" for its customers, Reed Hasting announced that Netflix will forego DVD rebranding.\n\n\n\n\n\n\n\n\n\n\n\n6. Netflix Loses 800,000 Customers in Quarter\n\n\nOct. 24, 2011\nBy Monday Oct. 24, over 805,000 Netflix customers had cancelled their subscriptions due to the company price hike.\nImage courtesy of Flickr, Ross Catrow\n\n\n\n\n\n\n\n\n\n\n\n7. Netflix Stock Plummets 27% Following Earnings Report\n\n\nOct. 24, 2011\nDown to $85 share price from $300 this summer, Netflix's stock fell 27% following the announcement that it had lost 800,000 customers.\nNetflix Stock Chart by YCharts\n\n\n\n\n\n\n\n\n\n\n\n8. Netflix Stock Falls 37% as Subscribers Depart\n\n\nOct. 25, 2011\nBy premarket trading Tuesday morning, Netflix stock had fallen another 10% since the evening before.\n\n\n\n\n\n\n\n"^^<http://www.w3.org/2001/XMLSchema#string>
<http://mashable.com/2011/10/10/netflix-ceo-reed-hastings-time-to-step-down/>