Monday, September 19, 2011
Netflix site/business split
If you haven't already heard, Netflix is dividing its company into two different sites, Netflix and Qwikster. Netflix will now be a streaming only service with Qwikster handling the DVD by mail. Current customers of both services will have an account created at Qwikster and will be billed separately at the current rates. Qwikster will also add video games to the library. Extreme downsides include separate sites, separate queues, separate ratings and separate bills. This just screams "Let's disassociate ourselves with the DVD business that's taking a nosedive." With this new information, which side are you choosing? Anyone staying with both services? As it stands right now, I'd be a customer of both services, but I'm going to have to reassess how much I use each service.
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8 comments:
I've already cancelled the DVD service anyway, so it doesn't really effect me. Combining with the video service is a great idea though and should put a hurting on Gamefly for people who use that service.
I think I see where this is going the more I think about this situation, and I don't like it. After jettisoning the DVD by mail service, Netflix will be able to negotiate better content deals by creating tiered pricing. Backlog only? $8/mo. 2 new releases/mo? $12/mo. 5 new releases... etc. Redbox is looking more appealing...
is it april 1st? we switched to dvds when we were forced to make a choice. we haven't missed the streaming at all and have started using redbox more often as well. netflix has been doomed to failure ever since it has started hemorrhaging money on licensing deals.
Much like J I have switched to DVD's only and could care less about the streaming. However, if this is a way for them to wind down the mail business do to the cost of licensing fees than I might have to rethink my options. I would probably just do a lot of Redbox and maybe consider streaming, but probably not. For now I am content though.
To me this is screaming bye bye DVD by mail.
I still have both, but I'm getting tired of the streaming. 90% of the stuff I want to watch isn't available to stream, which is why I kept the DVD service, so now I guess I'll just get rid of the streaming part. Unless they're going to offer a wider selection as a result of the separation... Eric do you know?
I think that's the idea. I think they saw their two delivery models getting closer to being outright competitors, especially if more content was to be added to the streaming service. Putting all their eggs in the streaming basket, Netflix bundled up the dvd service nicely to be sold to the highest bidder in a year or two.
One thing is for sure, if they don't vastly increase their streaming selection soon after the split they'll be in for a world of hurt. The brand they're trying to protect will be the first to die.
Christina and I seem to be in the minority, as we're going to keep the streaming service for now. We use it quite a bit now. Pairing our ratings and recommendations with a possible increase in content would be very nice. Redbox and blockbuster express do a good enough job replacing the dvd service, especially with new releases.
Qwikster twitter handle already taken (whoops): This is pretty funny
Haha that is hilarious.
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