> But the upside for netflix is those people that end up picking both.
How's that an upside considering that's what they currently have? Instead of one charge on your credit card there will be two that add up to the same thing. At best (for Netflix). This will not raise revenues.
I think it's important to realize the difference between these businesses. Qwikster won't have to negotiate with the content providers because they can purchase the DVDs and games and rent them without the content companies having a say. Netflix has to negotiate for all their content, and we all know how reasonable the content companies are.
I don't think we'll see a spin-off for at least a year, and probably bit longer.
I think you're right. As not much more than a Netflix subscriber, it really, really looks like Netflix is desperate for cash. Maybe they're getting ready for war (i.e. they may well know that Amazon or Apple or Google could well be imminently about to crush them). I know we've already switched to Netflix streaming+1DVD-plan+Amazon-Digital-Downloads (not streaming) but we've been using redbox so much now for new releases that the 1DVD plan is feeling quite expendable.
But the upside for netflix is those people that end up picking both.
The time to analyze this is 6 months from now when the figures are in.
My personal best guess about what they're about to do is sell off the DVD division.