Reed Hastings, CEO of Netflix has not had it easy in 2011. There was a customer revolt over the increasing of fees. A second round of anger was caused by the Qwickster fiasco. 2012 is not starting any better. Reed has told investors that they are dropping plans to start the video game rental service they announced back in September.
While that is disappointing it is not surprising. The mail order side of their business is very expensive to run. Adding another set of shipping costs as they are losing mail order customers would probably hurt their profits, which have just started to rebound from the Qwickster debacle.
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