Earlier quoted context omitted.
And yet somehow Amazon manages to stream video and sell DVDs at the same time. Heck, they sell lingerie and organic tea at the same time.
But if Amazon's DVD business, or selling organic tea, doesn't perform well in the long run, they'll still be in business. If renting DVDs or streaming movies doesn't perform for Netflix, they're out of the game.
That is a reason to diversify, not to Balkanize the organization even further.