This whole thing is some investment bank's brainchild that Netflix swallowed hook, line, and s[t]inker. In early 2011, it was "Hey guys, we can split up your sleepy, high-margin, but declining revenue base DVD business from your sexy, higher cost, but explosively growing streaming business so you can monitize them both more efficiently in the capital markets (and make a ton of money on the options you get converted into on the new business)." In late 2011 it's now "Sorry guys, the major indices are off 15%+ and the multiples have shrunk considerably. We should scrap this idea. The bright side is that your customers didn't really want it, anyway." Spin, baby, spin.