Every now and then, the business world presents us with a lab experiment that we can observe in realtime. Netflix's announcement that it is splitting off its DVD-by-mail business from its streaming business is just such an experiment. The DVD business will now go by the name Qwikster, and the streaming business will stay under the Netflix brand. It is Clayton Christensen's innovator's dilemma incarnate, and Netflix is very publicly trying to solve it. Like its 60% price increase did earlier this year, this move is understandably causing consternation amongst some customers. It's a bold move, one that will cost them in the near term, but Netflix I'm sure has done the calculus and is looking at the endgame 5-10 years out, not 5-10 months.

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As you probably will have noticed, we recently updated our strategic positioning and branding, introducing the Aricent Group as a provider of “innovation services for the connected world.” The Aricent Group name now serves as the new corporate brand for the company, with product innovation, design, and related engineering offerings marketed under the frog brand, and R&D engineering and carrier services marketed under the Aricent brand. The brands will each maintain their own client base and continue to collaborate in situations where clients can benefit from the Aricent Group's full breadth of capabilities.

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