[Kamui4356]

Originally Posted by james0246

Qwikster: Netflix To Split DVD Service Into New Business



Additionally, the new Qwikster will have the standard Netflix Blu-Ray upgrade option as well as a new Video Game upgrade option. Prices will stay the same, the only difference is two companies instead of one.

I fail to see how splitting the company is going to address the underlying problems in the cost model. Wouldn't it just lead to increased costs of operation for both due to the need for separate management structure?