Netflix Split: Should We Blame Canada?

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REUTERS/Brian Snyder/Files

It’s a hassle to have to deal with two separate companies, meaning double ratings, double queues, and most begrudgingly, double bills. Why not make the grieving process easy by just blaming our northern neighbors?

Canadians: they’re lovely people. Seriously. And we bet they’d offer a hearty and sincere “Sooorry.” But according to Netflix CEO Reed Hastings, we should blame them for the split between Netflix and the new DVD-by-mail service called Qwikster.

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“It’s all the Canadians’ fault,” Hastings joked Thursday as he answered questions about the fracturing company while celebrating Netflix’s first anniversary of its Canadian launch. The Great White North got its first taste of Netflix last September, as a streaming-only endeavor.

“Is broadband good enough that streaming only, without DVD, is a good enough product to catch on?” Hastings wondered. Turns out, it certainly was. Netflix decided to keep Netflix as a strictly-online enterprise, without offering the DVD-by-mail service. And business was good. Good enough to exist on its own, apparently.

Seeing the success of streaming in Canada, Hastings brought the results back to the U.S. The DVD-by-mail division was unbundled from the streaming service in July, meaning users would have to pay for each. And this week Netflix announced the postal program would become a separate company, now (laughably) known as Qwikster. We’ve never seen a better definition of “going postal.” The Netflix stock has tumbled more than 30 points this week in reaction to the name change.

Nick Carbone is a reporter at TIME. Find him on Twitter at @nickcarbone. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.

MORE: Backlash Rages in Response to Qwikster

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