American Morning

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September 21st, 2011
03:35 PM ET

Can Netflix rebound after splitting into two divisions? A marketing expert weighs in

After raising the prices for their services by sixty percent earlier in the year, Netflix announced yesterday that it will be splitting into two divisions, Netflix and Qwikster, and they are receiving a lot of flack for the decision.

The company's CEO Reed Hastings released a statement Monday apologizing to his customers saying, "It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes."

Today on American Morning, Christine Romans talks to Adam Hanft, CEO of the marketing firm Hanft Projects, about Netflix's business decisions and how the brand is going to rebound.

Filed under: Business
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