Netflix Splitting Streaming and Rental Services into Two Companies

[Epona]

This is the first time I have heard anything about Starz going to blockbuster. Kind of strange since Blockbuster filed for bankruptcy a little over a year ago.

It's confusing to the point that if a corporation files bankruptcy, it could mean anything. They could close all their stores and shut down or they could keep doing business. I am as confused as you are. Here's a link though if you haven't already looked it up.

http://www.tomsguide.com/us/Netflix-Blockbuster-Starz-Entertainment-Video-On-Demand-Dish-Network,news-12402.html

 

[bigo2mags]

The fact of the matter is this Netflix/Qwikster situation is now officially out of control, and may lead to the ultimate demise of Netflix as whole. Reed stated in no unclear terms that he wants to "innovate" both streaming and disc-subscription services, but all his actions seem to point to the desire to completely drop the disc-based service from Netflix entirely. As a customer, I can respect that, and I can even get behind the whole "streaming is the way of the future" logic, but it's simply too soon. There's a difference between giving your customers a choice and *forcing* them to make one, the consequence of which will be some very serious backlash.

Reed has effectively eliminated the potential for Netflix to become a one-stop entertainment shop with this seperation. He says they are planning on including games for an increased fee with the disc-based subscription. Can you imagine the potential if this were actually integrated with the existing Netflix service? Rating games and movies, with the site making suggestions to new content based on your preferences. "Oh you like the CoD series? You should really check out The Rock or Enemy at the Gates." or "Based on your rating of The Mummy and Raiders of the Lost Ark, you may be interested in playing the Uncharted series."

So much potential, all to waste. They've gone one step forward and ten steps back, and in an attempt to force their customers to stop using disc-based subscriptions they may just stop using their subscriptions altogether.

 

[Callate]

...Probably not the smartest move. It sounds as though Netflix is hoping that once the DVD mail portion of the business is rebranded, users will start forgetting that there was this whole other area of service they used to get for the same price.

In fairness, I don't envy Netflix their position at all, and I still quite like their service despite the difficulties they've had of late. I hope they can overcome their problems and stabilize their revenue stream. I don't really see how anyone with a basic grasp of math could suggest that covering about a third of the Internet bandwidth in the United States and sending out eight or more disks a month (paying postage both ways) for $8 or so a month was a permanently viable business model.

 

[Pinstar]

Their DVD by mail service is an old dog. It was good to them, but its become senile and poops on the carpet now. They're moving it outside in the hopes that it runs away...or maybe so they can quietly shoot it when nobody is looking.

 

[MorganL4]

I think Netflix's mistake is having the company goal of slowly fading out their physical DVD rental service. Not everyone has a connection strong enough to support the streaming of digital content or the download of digital content in a timely manner.

Unfortunately for them (and the people who use their physical rental). Getting things mailed to you is becoming harder and harder. In the US, they still use the USPS. The USPS has been leaking money like a sieve, and is constantly having to raise rates and cancel delivery dates during the week. Snail mail is dead and it's slowly killing the regular mail system with it.

Actually.... If you look at what is happening to the USPS; it is this wonderful institution we all know and love called the United States Congress. ( you know the guys with the 13% approval rating)

The USPS is a profitable enterprise, and has been from its inception way back when...... But the US Congress has decided to "pre-fund" the retirement of postal workers..... instead of the tried and true way of paying for retirement, ( some comes out of paycheck as you get it and goes into a fund) the Congressional ruling of 2006 that requires 5.5 billion dollars a year be set aside between now and 2016 to pay for retirees in the future. ( without this stipulation the USPS would net 1 billion dollars in profit annually, not income but PROFIT.

 

[Brian Hendershot]

The price hike only raised the prices to what they used to be before Netflix go oh so popular. Ho ho hum...

Anyways, I think the addition of a video game is option. I really hope it's better than Gamefly
s shitty excuse for video game mail service. It took me a week to get any game from them (as opposed to the two or three days it takes to get a movie from Netflix, even though both shipping centers are close together) and I never never never never never never never never never got the games that were in top five or six Game Que. I am so calling BS on that marketing....

To sum up: Not mad about the Netflix price hike but I don't really like it either. Also Gamefly sucks.

 

[serata]

"We're adding videogames!"

I was like

"They'll be available from a different service called Qwikster!"

Then I was like D:

OT: Yeah, I'm especially mad because I lost a lot of money on what I thought was a really good stock. *sigh*

 

[Baldr]

The studios want to kill DVD/Blu-ray, ever major studio(except Disney) has signed on to one system for a single content distribution http://en.wikipedia.org/wiki/UltraViolet_%28system%29
Good news you only have to buy a movie once, but you can watch it on any device, the bad news you need the the internet to download access.

I guess netflix was feeling that pressure to drop DVD soon.

 

[ace_of_something]

Glad I sold my netflix stock like a week before they announced the price hike (it was dumb luck, i needed money to pay off a big chunk of my motorcycle)

I live in a 'semi-rural' area outside the city where internet service is shit. So we stick with the mailed dvds/blu*rays. I'm glad they decided not to go to an all digital format or they would've lost me as a customer.

Since I only use ONE service i don't really give a crap about them being cross-compatible. So to ME this is a good thing.

 

[HobbesMkii]

Netflix Splitting Streaming and Rental Services into Two Companies

In a desperate attempt to rebound from falling membership and plummeting stock prices, Netflix is creating Quikster to handle DVD and videogame rentals.

Reed Hastings, the founder and CEO of movie streaming and rental giant Netflix, made a post on his blog late Sunday night announcing a massive restructuring of the business. Netflix will soon be a company that deals only in the media streaming business; the rent-by-mail service long associated with Netflix will be operated by a new company entirely, going by the name of Quikster.

Actually, Reed Hasting's e-mail/blog post spells it "Qwikster." You know...as a slightly illiterate child might.

 

[fundayz]

That still doesnt explain anything. Before the price hike it was an absolutely insanely amazing deal. After the price hike it was still an amazing deal. They kept adding more and more content and didnt increase the price. I thought it was extremely obvious that they were going to be forced to raise their price and oh look they did. Then again I work in cost accounting so I understand that you cant keep adding more and more costs to a service without eventually raising the price for it.

I guess they could have gone about it a better way but really I didnt think it was a very complicated matter to understand. They had three options available to them, raise the prices, split the service or go bankrupt.

This. They were providing a service for WAAY too low a price and a price hike/splitting of services was inevitable, specially with streaming's growing popularity and physical DVD demands still not waning considerably.

How people can still be pissed even though the services, while more expensive, still provide great value for their cost just screams "Entitlement".

 

[SelectivelyEvil13]

I ran out of time for movies around the time Blockbuster closed most of its stores around where I live, but Netflix, even after price increase, still seemed fair. But now with this news of splitting the service, I'm completely turned off by the idea.

Before, it would have been at least feasible to use one company to figure out which service (physical disc vs streaming) would be the best deal for my family and me. Now, I cannot even fathom the juggling act if the DVD delivery service didn't pan out, resulting in a switch to Netflix, but running into internet trouble (THANK YOU KINDLY, Comcast), so in the end going back to the physical DVD system. Two completely different accounts, and no ability to manage between them conveniently, sheesh. And all things considered, that "price hike" was still quite reasonable.

Had they streamlined the service's organization and pricing structure while introducing this new game rental feature, they might have smoothed things over without the inevitable confusion by customers that hadn't jumped ship. Discovering that "Netflix" doesn't *do* DVD delivery anymore might be enough to scare off some for good, "Qwikster(?!?)" or not due to the flexibility of options (think back to the Netflix ads where everyone in the house could watch something, streamed or physical).

 

[gphjr14]

Overall its bittersweet because initially I loved Netflix as I cancelled cable in favor of it. I hoped and was 90% sure that the price hike would have an adverse affect as many people like me cancelled one of the services, in my case the 1 DVD plan.

It just isn't worth it the selection is too limited and the turnaround times are too long. I live in Greensboro, NC its a fairly large city with a Netflix distribution center which makes sense considering its location in the state. It takes almost 2 days from the time I request a DVD till it arrives in the mail, that's way too long considering how close I am and the fact I can put something in the mail before 3 and it'll arrive at my parents house the next day and they live 2 hours away.

I'll look into this new service for the games aspect of it but I'm sure it'll be a ripoff and I'll just go back to buying/selling used games on eBay.

 

[Zarkov]

Ahh the dumb get dumber...

"Hey everyone hated us because we fucked everything up once, lets do it AGAIN! This will make them happy, right? Right..?"

And the whole "hey nao we rentz gamez!" idea is kind of interesting... until you consider that they will probably charge more still for that.

Now, if netflix offered game streaming like Onlive, now THAT might make the streaming version worth while!

Resist the Cloud. Resist Onlive.

Why resist it?