Updated: Continuing the mistakes theme with Netflix . . .

Update, December 13: To thank me for still maintaining a dvd subscription, Netflix is offering me a "free bonus DVD rental to supplement" my subscription. So I get to have three out at once. I can still watch only one at a time, when I have time, but I guess I appreciate the gesture. I did click on the link. Any thoughts on this gesture?

Update, October 10: Netflix has announced this morning that it is not splitting in two, "This means no change: one website, one account, one password . . . in other words, no Qwikster." They're also trumpeting their new marketing deals and streaming arrangements. Maybe this was the plan all along?

or perhaps not. Slate's Farhad Manjoo argues in this post that Netflix CEO Reed Hastings' announcement Sunday morning that the company is splitting in two, with Netflix to keep the streaming business and a new company, Qwikster, to mail DVDs, may have been a very smart move. And, counterintuitive though it sounds, that's because the announcement alienated customers.

What do you think of the Netflix decision? Manjoo's argument? Post a comment!