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Communication problems aside, Netflix's decision to break apart the business is part two of its plan for the future, a company spokesperson tells Fast Company. Netflix's announcement that it is splitting its DVD service off into an entirely new business may have some wondering if that decision was a reaction to all the negative response to the announcement earlier this summer that it was raising rates on its hybrid DVD-streaming business

A few short months ago, Netflix made the bold decision to increase the price for its DVD-by-mail and streaming subscription plan by 60% . The announcement inevitably inspired universal vitriol among customers, but Netflix stuck to its guns, saying in a recent earnings call that the negative reaction hadn't been as bad as the company anticipated. Now, however, only a short while since the price plans went into effect, Netflix is singing a much different tune: Mea culpa! Last week the company adjusted its guidance because of worse-than-expected subscriber declines (estimating a loss of 800,000 DVD-by-mail customers and 200,000 streaming customers); its stock price took a huge tumble of 19% (down 44% overall since the price plans were announced); and on Sunday night, CEO Reed Hastings took to Netflix's blog to apologize and offer a slew of (dramatic) solutions.