As some of you may have heard, recently the president of Netflix, Reed Hastings, posted some information that kind of has Netflix subscribers in a stir:
“An Explanation and Some Reflections
***********************
“So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster”.
We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.
There are no pricing changes (we’re done with that!). Members who subscribe to both services will have two entries on their credit card statements, one for Qwikster and one for Netflix. The total will be the same as the current charges.”
-Reed Hastings.
This strange move to split Netflix into two separate entities raises a number of questions. Will existing member automatically get memberships to both, or will Netflix cancel DVD subscriptions and say if you want it, go get it? Will we have to create an entirely new DVD queue? Will the Qwikster DVD library be as expansive as Netflix’s current DVD library?
Also, some negative thoughts hit me as soon as I heard about this. For one, we’ll have to search in two separate libraries for movies we want, that’s been confirmed. Also, Qwikster is a terrible name for a franchise. Sounds like a gas station chain, or a lame Flash villain. Why didn’t they go with something kind of familiar, like Quickflix? Not to mention how dang inconvenient it is for us, the customers, to have to deal with two different subscriptions, two different websites, and two different movie queues. I mean, would you still want to shop at Amazon.com if they split it into DVDazon, Toyazon, Hardwareazon, and a zillion other little subdivisions?
So far all of the major social networks have been abuzz with the negative aspects of this new move, and it doesn’t help that it’s pretty tough to find anything to like about this. Could this just be a step towards Netflix becoming a multi-corporation business, or is it the first step of many towards a dark, Terminator like future where evil machines run rampant, constantly tweaking and adjusting our movie libraries so that we can never find the flicks that we really want.
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I’m with you on the stupidity of this move, but I’ve read some people are deducing that this is happening because of the huge amount of pressure the studios are putting on Netflix in the form of geometrically increasing their licensing fees for streaming.
I’m definitely not defending Netflix/Quikster (blech), just pondering possible reasons for such a bizarre move. They definitely could have handled this a LOT better (gradual price increases vs. BLAM! 60% more thankyouverymuch!). It’s pretty bizarre and honestly has me contemplating Blockbuster’s service. I’m just skeptical of BB’s long term prospects.
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IM of the opinion that I dont care I use Netflix for streaming only and if it gets stupid or little to no content I want to watch then I will just cancel
its just TV after all you see fer Christ sakes get outside and get some exercise
The split makes perfect sense and is a very smart move IMO. Physical media is becoming increasingly less relevant and I’m reasonably sure that streaming is a lot less expensive for them. They split off the DVD service so that they can sell t when it ceases to be profitable. That way, when whoever buys it kills it off, Netflix won’t get the backlash.
Put it to ya like this.. what he is saying in no uncertain terms is.. they came up with alot of BS to cover for the fact that they stripped us of a unified payment plan that gave us dvds and streaming video to capatalise on both. Example.. 10 dolars a month roughly for 2 dvd rentles and streaming video… Great deal! Now.. 8-9 dollares rounded up for streaming and another 8-9 dollars for dvd rentals.. stil 1 dvd out at a time now for roughly the same ammount as for 2. What does this do? Generatres an absurd ammount of cash from millions of subscribers and cheats the subscribe of the better deal.
Yes I got the same email sent to me asa former netflix member as well. I was not impressed. I returned the email in kind informing them that I not only saw throug hthe lies to the scam they ahd commited the4mselves too, but refused to reinstate my membership sith them until they dropped the scam and recommended instead tak the 10 somethign a month and raise 2 dollars more. the combined revenue would insure them more than enough to cover the streaming charges and still leave them the more convienet choice of all the others out there. I also recommended to the CEO that he fire with out pention the Moron who came up with this idea of a scam in the first place.
I doubt they will respond with anything less then a sluff off responce. I see this error as beign the end of netflix all together. even their backers are pulling out on them over these price gouges.(hence why they are seperating into two division in order to avoid the legal action for doing so)
I know I am long winded my friend and apologise for such. But I have never liked what this boen head CEO put into motion months ago and if I were o nthe board of directrors for the company.. I would vote no confidence.
^_^ I am so glad you are my friend and let me post here.
With the whole Starz drama, I’m not even convinced that Netflix has any real value as a streaming media company. The best films in the library are all Starz films.
The current move makes sense as far as their business. I know far more people who subscribe specifically for the streaming and rarely care about the DVD rental except that it came with the streaming.
I do so much Redbox any more that dropping the DVD portion of Netflix is just a natural thing to do. As it stands, when the Starz contract expires and the quality/quantity of the streaming drops as a consequence, it’s likely that I’ll cancel Netflix altogether.
Wow!! This is definitely hot news. I know many film bloggers who prefer the DVDs over streaming (as subscribers of Netflix) due to the availability of titles as well as getting access to the “Special Features” section. There are many who do both. And, yes – this can create a bit of chaos should the two not overlap. Very interesting, thanks for sharing! 🙂