In a move applauded by investors and customers, Netflix has decided to ditch the division of its businesses and keep both streaming and DVD services under one name.

Stock has gone up significantly (although not enough to cover losses incurred during the announcement) and positive feedback has been rolling in.  Netflix is also working to recover the 1 million customers it lost when it made the announcement.

For many, the question has been- why? Why would they divide the services on top of announcing a 60 percent rate hike for those that wanted both? Well, they’re different cost structures, and if you only wanted streaming, which represented the majority of new customers, you wouldn’t have seen a price hike at all.

Although the numbers looked right, it didn’t fit the Netflix customer’s needs and the brand’s value proposition. Not every idea can be a success -- this New York Times piece compares it to the New Coke, remember that? -- but it appears, at least at this early date, that knowing how to come back from that leap is what matters. After all, Coca-Cola is still here. 

Another silver lining of this reversal is the sense of brand ownership and control customers are feeling. I am seeing a lot of feedback about Netflix really listening to their customers, which sets them up for future dialogue when creating and rolling out new services. On the flp side, there have been great blog posts written about what Netflix could have done better to have made this rollout a success.

How do you think this will affect the brand long-term?  If you’re a Netflix customer, will you stay with the brand or cancel services? Do you think this move shows that Netflix is being “topsy-turvey,” as some have suggested?

Looking forward to seeing how this decision plays through.