CEO Reed Hastings splits Netflix into separate businesses: "Netflix" dedicated to streaming video and "Qwikster" to handle DVD-by-mail.

The announcement follows the unpopular recent change in pricing where subscribers don't get automatic access for both mail and streaming services-- an announcement some customers describe as a "confusing mess".

Other customers simply cancelled their accounts in anger.

Hastings explains the change as evolution, saying "companies rarely die from moving too fast, and they frequently die from moving too slowly".

By isolating the cost structure in the DVD-in-the-mail business, Hastings can prepare for a worst case scenario of the Blockbuster-variety, protecting the family jewels in a separate ring-fenced company. Public controversy about the move asks if Hastings is being hasty? Either he is a genius or an idiot, declare some of the blogs.

But no one knows which it is. At the core of the controversy is a very important question: are these two different customers (DVDers vs streamers) or the same consumer who just uses different priority for different video usage?

No mention yet if Netflix will use separate names once it (eventually) arrives in Europe-- something it should be doing in 2012, at least in Spain and the UK. But based on this decision, you might expect the DVD-in-the-mail model might get left behind.

Go Netflix: An Explanation and Some Reflections

Go Netflix Customers Respond With Confustion (The Wall Street Journal)

Go Spanish Eyes for Netflix

IHS iSuppli reports the European cable market continues growing in 2010, with EU revenues reaching €18.7Bn and 7.9% Y-o-Y growth.

The analyst attributes the growth to strong growth in digital TV, broadband and telephony subscribers-- with individual service subscriber contracts reaching 101.1M (up by 3.2% from 97.9M in 2009).

Digital subscriber numbers for 2010 grow by 15.8% Y-o-Y, telephony subscribers by 10.8% and internet users by 10.5%.

Such numbers show the European cable market resisting the "cord cutting" trend according to iSuppli, where customers cancel their pay TV services in favour of internet-based alternatives.

However cable providers should not rest on their laurels-- the numbers are also a reminder of the importance of investments in  fiber-rich, high-speed networks.

Go IHS Screen Digest European Broadband Cable 2011 Report

Reuters reports LG Display will cut its 2012 capital spending by 25% (making it the lowest in 4 years) as mobile device demand eats into that for TV panels.

The situation results in the company ending up with excess capacity for over a year-- with no relief in sight.

Analysts describe the outlook for the next 9 months as "dreadful"-- weak PC and TV demand especially in Europe and the US and global Q2 2011 LCD TV shipment growth reaching record lows (6% Y-o-Y).

LG Electronics (the world's no. 2 TV maker) cuts its TV sales targets by 20%, while Sony braces for weaker sales and Philips hives off its loss-making TV division.

Prices are also heading downhil, with 40-42" LCD TV panel prices dropping by over 10% in 2011.

LG Display is the first major LCD maker to cut its capex-- even if one can expect Samsung to make a similar announcement in the future. LG Display and Sharp together make 50% of the global LCD flat-panel industry.

Go LG Display Cuts Capex (Reuters)

Google CEO Eric Schmidt says Google remains "absolutely committed" to Google TV, expecting more partners to join the still-struggling business.

The news comes from Reuters reporting from the Edinburgh TV festival.

Schmidt attributes Google TV's relative failure to be partly due to its being a feature designed into TVs-- devices customers replace only around every 5 years.

Google should launch its TV service in Europe on early 2012-- unless it encounters resistance from European broadcasters. The company is still to resolve its differences with US networks ABC, NBC and CBS.

Schmidt also mentions there are "interesting ideas" on how the recent Motorola Mobility-Google merger will affect Google TV... after all, one has to remember Motorola Mobility is also one of the biggest STB makers around.

Go Google's Schmidt Sees More Partners for Google TV (Reuters)

Go A Shot in Google TV's Arm?