Ah, mixed signals: the bane of business and personal relationships alike. Netflix has become quite an expert in the mixed signals business with its stance on its bread-and-butter DVD business. After multiple comments by CEO Reed Hastings about Netflix being a “streaming company”, Netflix continues to hedge its bets with the lowly DVD.
The company’s latest move demonstrating it’s not quite finished with DVDs is its purchase of the domain name DVD.com. The name now automatically redirects you to dvd.netflix.com.
Steve Swasey, Netflix’s VP of corporate communications, gave the following brief response when questioned by GigaOM about the domain name acquisition:
“Netflix cares about keeping DVD healthy, and this is just one small investment in keeping DVD healthy.”
After unsuccessfully trying to spin off its DVD business with the ill-fated Qwikster move last year, Netflix has driven off a lot of its DVD subscribers. Comments by Reed Hastings, as well as Netflix’s major investments in streaming-only content, have also demonstrated a major shift in the company’s thinking away from DVD.
Why this domain name purchase, then? Maybe Netflix took a long look at its DVD profits and has some new DVD initiative up its sleeve. Or maybe this is just a simple move to prolong the life of the DVD side of its business model. Hit the comments and tell us what you think, Insiders.