The Silicon Valley Business Journal reports that Netflix is moving the new DVD Division, headed by Andrew Rendich, to San Jose. There are an estimated 225 employees in the DVD divsion, and an estimated 800 Netflix employees will remain at the current headquarters in Los Gatos.
“The DVD division’s new location in San Jose will help alleviate the crowded conditions at Netflix headquarters,” said Rendich in a prepared statement. “Our new office will have convenient access to mass transit and will be closer to the Netflix Northern California DVD distribution center in Fremont.”
My theory is that Netflix will eventually sell off the DVD business instead of drawing out an eventual and inevitable shutdown of DVDs by mail. I think the new pricing scheme was intended to split off as many customers as possible to DVD only plans to make it an easier transition. This move only bolsters my theory.
Posted by: David J. Weiner | July 24, 2011 at 11:49 AM
I know somebody that works for netflix and she tells me that the Streaming is not going as well for netflix like they thought it would and this move is to get the focus back to dvd by mail and that the problems that netflix is having with streaming could make netflix go back to dvd more than streaming!
Posted by: Jv3030 | July 24, 2011 at 12:21 PM
@Jv3030: This is interesting, but it does not jive with the recent changes Netflix announced about eliminating all DVD features from it's Open API (also announced here on HackingNetflix.com). Please keep us informed as you hear more from your friend.
Posted by: ErinsMatthew | July 24, 2011 at 02:56 PM
Last month, you reported they were facing local opposition to their plan to expand in their current location. This news is probably the result.
June 14 article
June 29 article
Posted by: Donutdon | July 24, 2011 at 02:58 PM
Do you know the way to San Jose?
Posted by: Henchman-24 | July 25, 2011 at 10:56 AM
Dude, I'm still trying to find Sesame Street.
Posted by: Marshall | July 25, 2011 at 11:16 PM