Netflix (or Qwikster)…what were you thinking?

RetailWire panelists recently had an opportunity to weigh in on the much-publicized travails of Netflix. In particular, their recent announcement about separating (and re-branding) their DVD business from their streaming business raised a lot of eyebrows, including mine:

I might as well pile on … I got the e-mail from the CEO yesterday and was scratching my head after reading it. Netflix has managed to mess up great brand equity in record-breaking time, and now compounds the problem by changing the name of the part of the business that worked in the first place. (There’s nothing in the “mea culpa” about the lousy selection of streaming movies, which is the underlying challenge.) Would any retailer moving from single-channel to multi-channel (which is essentially what Netflix is doing) drop the brand name from the core business that built its reputation in the first place?

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