Reed Hastings' current moves fixed a problem that didn't need to be fixed 5-10 years before it became an actual molehill of a problem.
The analogy of the sales/rental split compared to the current split is the flimsiest of arguments. The Netflix UI has for years been ever so easy to navigate and wasn't something that went over the heads of basic users.
"I want to see Movie X."
Movie X can be mailed to you by clicking the red button
Movie X can be played immediately by clicking the blue button because you are tech savvy enough to own a Blu-ray player or an all too common home gaming console which will allow you to do so.
Hell, even the Disc queue would AUTOMATICALLY put a dual format film into your Instant Queue.
People keep pointing to the biggest possibility behind all this being the fact that Hollywood wanted per person/per month money for ALL subscribers regardless of content delivery. Netflix gave a million dollars to some guys for figuring out a better way to click on some stars and tell me what else I would like to watch. Are you telling me that nowhere in the code for that fucking website is the ability to KNOW who the hell is and isn't using the streaming content, pull out those numbers, wipe your ass with a printout of it and slam it down on the negotiating table and tell Hollywood to go fuck themselves?
Jesus, someone on the boards pointed me a few months ago that can give me a Queue analysis LIKE I JUST SAID ABOVE!!!!
High speed internet service isn't reaching enough people to make this a smart decision and those who do have it lack the speed and bandwidth for picture and sound quality necessary to make the money spent on that fancy home theatre setup worth the effort. Are those two fringes such a minority that they have no bearing on the decisions made by this business?
That article reads to me like damage control from someone whose stock options just went to hell in a hand basket.