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This article completely misses the point. Hastings & Co. made a mistake. Yes. But they are learning and dealing with it way better than I would have imagined. At least they acknowledge a mistake and the CEO isn't egotistical enough to take the company down a wrong path (i.e. continue with split Netflix and Quikster) even if he believes it to be incorrect. Personally, I just gained new respect for Reed Hastings. Also, are we forgetting that this is also the man who was visionary enough to bring us legitimate Video on Demand when everyone thought online digital content either didn't matter or was restricted to pirated copies floating on the internet.

I personally see the Netflix case similar to the way Southwest Airlines hedged fuel prices to gain an advantage compared to other firms. When that advantage ended, it had to figure out a way to compete with the rest of the world, often times increasing prices or reducing service quality.