Ravynmagi
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Subject:
Netflix spins off DVD business
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Netflix is spinning off it's DVD renting business as a separate company named Qwikster. Netflix will just be focusing on streaming video. Qwikster will rent physical DVDs, Blurays and even videos games. No new changes in prices.
Guess now we know why Netflix wanted to separate the streaming and DVD rental plans.
Not too crazy about the name though.
http://www.dailytech.com/Netflix+to+Spin+Off+DVD+Service+with+Qwikster+CEO+Apologizes+for+Lack+of+Communication+/article22771.htm
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IvanDF
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yea I don't get this move, I'm on board for the video game rentals, but I dont get why you have to change the name of the dvd rentals.
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Lannai
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These guys are driving me MAD. How hard is it to not screw up a perfectly good business model. I don't know who the buffoon is that is making these decisions...but it can't possibly be the same guy who created the business (and yes I read the email they sent me). This pretty much guarantees I quit. I'll keep my $23 a month and just use redbox. Splitting the website so I have to use separate sites for my dvd and streaming stuff is ignorant. That means I now have to manage 3 profiles on 2 different sites. Total imbeciles...
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Subject:
Netflix spins off DVD business
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Ravynmagi posted:
Netflix is spinning off it's DVD renting business as a separate company named Qwikster. Netflix will just be focusing on streaming video. Qwikster will rent physical DVDs, Blurays and even videos games. No new changes in prices.
Guess now we know why Netflix wanted to separate the streaming and DVD rental plans.
Not too crazy about the name though.
http://www.dailytech.com/Netflix+to+Spin+Off+DVD+Service+with+Qwikster+CEO+Apologizes+for+Lack+of+Communication+/article22771.htm
And yes...dumbest name ever.
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Vyxar
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You have a company that offers 2 services. What in Gods name makes you think that splitting them up so that you have to maintain 2 portals for customer access/service is going to save you money?? I could honestly sort of bend my head around the idea that the streaming and disc by mail services were 2 different things and needn't be automatically lumped together. But my God, this guy has gone bat[profanity] crazy.
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Ravynmagi
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Netflix spins off DVD business
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My guess is Netflix sees the DVD rental business declining and the streaming video business booming. So they want to spin off the DVD business and let it go die quietly without it's name attached to it. *shrug*
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Greybear1andonly
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Notice tho they are still bleeding customers from the price change and should be going under soon.
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Balor_Gafdan
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Subject:
Netflix spins off DVD business
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Greybear1andonly posted:
Notice tho they are still bleeding customers from the price change and should be going under soon.
Umm ya I don't see that happening anytime soon considering Netflix accounts for 20% of US Bandwith Usage.
That's a lot of customers.
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Karsus_the_Great
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I wonder how this is going to effect you as netflix started shafting you with the game of, stream this tv show, season one disc one is only on dvd only, disk 2+ available for streaming...
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Aerlinthian
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Netflix spins off DVD business
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It's like New Coke...
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Greybear1andonly
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Subject:
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Aerlinthian posted:
It's like New Coke...
Yep. How long till Qwikster announces their new feature....STREAMING.
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Speak-pkhq
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qwikster lololol
my best guess as to why they split the company apart is probably to save money on licensing somehow. they need to keep their costs down (just like everyone else these days) so what else is left? 2 support teams, 2 web portals, 2 of everything is not going to be a cost savings, so that just leaves licensing.
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Aerlinthian
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Subject:
Netflix spins off DVD business
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Speak-pkhq posted:
qwikster lololol
my best guess as to why they split the company apart is probably to save money on licensing somehow. they need to keep their costs down (just like everyone else these days) so what else is left? 2 support teams, 2 web portals, 2 of everything is not going to be a cost savings, so that just leaves licensing.
That sounds like a plausible scenario but I can't help but think that they took this route for marketing reasons that were based on really faulty assumptions. It seems that way to me because the last two months [or whatever] has been a PR fiasco of their own creation.
I personally really liked their concept and model and when I first heard about the rate change I thought it sounded like the typical complaints you hear from MMO players after a big change has been proposed or gone through and thought the clients were just having a hissy fit, but since then I have lost confidence in that view and am tending to believe that Netflix just screwed their own pooch.
I hope they recover because I still like the original concept & business model.
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Ravynmagi
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Subject:
Netflix spins off DVD business
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The article mentioned spinning off as a separate company. That turned out to be incorrect. They are spinning it off as a separate division and brand. So Qwikster will still be part of Netflix, just separate. Including separate accounts, queues, and billing.
And as Speak said, the speculation this may be at least partly an effort to improve it's license negotiations. Before with DVD and streaming accounts combined it made it's streaming user base appear larger, so content owners wanted more money. Now that the DVD business and accounts are completely separate, Netflix can now show the content owners a more accurate picture of how many streaming users it has.
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Meddyck24
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Netflix spins off DVD business
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1) The Qwickster name is terrible.
2) The fact that Qwickster and Netflix won't be integrated websites will make it far less likely that a user of one company will decide to also sign up for the other.
3) While the amount of streaming content has improved a lot, it still is puny compared to DVD content. And virtually all newly released movies do not appear on streaming for many months.
4) It's not at all clear that adding more and more content is the future of streaming. The Starz! situation may only be the first of a chain of events that removes content from streaming.
5) I've already switched to watching streaming on Amazon Prime and canceled my Netflix streaming. While Prime doesn't have anything close to the amount of content as Netflix yet, it's a far better value since it also gives you free 2 day shipping on most purchases on Amazon.com (and maybe soon will also give you free Kindle e-books). If Amazon moves aggressively to sign up new streaming content for Prime, they could kill Netflix as thoroughly as Netflix killed Blockbuster.
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Nakal
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I cancelled my Disc service yesterday. I found I do a lot more streaming anyway and Discs tend to sit around for a while before being watched. The "Qwickster" crap just sealed the deal.
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Ravynmagi
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Netflix spins off DVD business
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Someone has a theory on why Netflix has done something so crazy.
http://news.cnet.com/8301-1023_3-20110165-93/netflix-split-to-set-up-amazon-streaming-merger/
The theory is Netflix wants to sell itself to Amazon. Amazon however would not be interesting in buy Netflix as a whole because of it's DVD rental business would force Amazon to collect sales tax. Netflix has physical distribution centers for mailing DVDs and if your company has a physical presence in a state, you usually have to collect sales tax.
So split off the declining DVD business and Amazon can buy Netflix's streaming only business. Amazon's content library triples. Amazon would want this to better compete against Apple.
This would be monumentally awesome if this is actually what Netflix is going to do. But this isn't even a rumor, it's just someone speculating.
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Step 1 - Piss of customers
Step 2 - Spin off DvD business
Step 3 - ????
Step 4 - ACQUISITION!!
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Meddyck24
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Subject:
Netflix spins off DVD business
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Ravynmagi posted:
So split off the declining DVD business and Amazon can buy Netflix's streaming only business. Amazon's content library triples. Amazon would want this to better compete against Apple.
I saw that on Cnet. My question is: why would Amazon need to buy Netflix to get that content? Surely it could just acquire the same content from the media companies directly.
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Lannai
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Subject:
Netflix spins off DVD business
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Meddyck24 posted:
Ravynmagi posted:
So split off the declining DVD business and Amazon can buy Netflix's streaming only business. Amazon's content library triples. Amazon would want this to better compete against Apple.
I saw that on Cnet. My question is: why would Amazon need to buy Netflix to get that content? Surely it could just acquire the same content from the media companies directly.
If this were the case, just make the change and do it. Pissing off your customer base repeatedly doesn't seem smart. I still can't figure out who thought this new name is a good idea... Brand'ing is far more important than these guys comprehend.
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http://www.engadget.com/2011/09/23/dish-network-blockbuster-unveil-blockbuster-movie-pass-all-incl/
I can really see blockbuster making a comeback now, if they play cards right.
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Ravynmagi
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DISH bought Blockbuster and is now going to use the brand to provide DVD and game rentals by mail along with streaming content. Blockbuster Movie Pass will have 34,000 movies and TV shows, which is already bigger than the 31,000 Netflix has.
Meanwhile Netflix is splitting it's streaming and DVD/game rental business in half. What Netflix is doing just seems even more bizarre in light of this Blockbuster announcement. As that person speculated Netflix might be trying to do something else we just don't know about yet. Maybe they really are trying to sell the streaming business to Amazon.
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Reason Blockbusters is larger though right now is Dish is only giving this to TV subscribers right now. So they can piggyback on current channels subs. Have to see what the deal is for non dish subs when they put that plan out there. This could be a good start for Dish/Blockbuster though.
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Subject:
Netflix spins off DVD business
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Ravynmagi posted:
My guess is Netflix sees the DVD rental business declining and the streaming video business booming. So they want to spin off the DVD business and let it go die quietly without it's name attached to it. *shrug*
^^
This.
I think that they wanted to boost revenue for streaming (originally offered as a "free" perk) and grow that business, and INTENTIONALLY sell off or let the DVD business die. At the end of the day, they still have the BEST streaming content out there. As long as they can maintain STARZ contract or pick up some more content providers there still really isn't a service that can compete with the value of their current offering. They probably have less overhead and at the end of the day may not even care if everyone goes to Redbox for physical disks and then switches to streaming only.
I thought about cancelling-- but kept it for just streaming after I realized nothing else out there competes. I pay >$10/month and have no cable bill.
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Greybear1andonly
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'REUTERS' Lisa Richwine posted:
Netflix Inc reversed an unpopular decision to put its DVD video rental business on a separate website and rename it Qwikster, saying both DVD and online streaming services will stay on the same website.
DVDs stay on Netflix website, Qwikster name dropped
Heheh, one could assess this as Qwikster has gone into streaming 
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Ravynmagi
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"Welcome back loser DVD subscribers. We tried our best to get rid of you, but ya'll whined so much, we felt sorry for you."
-Sincerely, Netflix
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aww, I will miss the pot smoking elmo mascot. lol
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Lannai
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I have been irreversibly damaged by all the nonsense. My days are numbered with Netflix...
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Just got an email from netflix.
After all of the complaining, they have cancelled the Quickster Idea.
Netflix remains the same, although the pricing increases stand.
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Acao
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How the heck do you sign up for just the DVD/Blu Ray service? I have no interest in the streaming service as the TV's I would watch movies on do not have anything to stream with.
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Not sure how to do the DVD/blu-ray only. Maybe sign up for the free one month trial, add DVD's, then cancel the streaming subscription?
But you don't have a gaming console - Xbox 360, PS3, or Wii? If you have any of those, you can easily stream from Netflix to your TV.
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Caoilin
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this has been comedy gold. if they don't renig on the idea of renting out games, i'll sign up with them again. if they don't offer games, i won't. no interest in their terrible streaming options and i don't want to pay extra to get blurays instead of dvds. which i probably wouldn't watch anyway because physical media is a huge pita.
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Acao
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Jarom, I do have a 360 but it is hooked up to my computer monitor. I would like to sit on the couch to watch a movie, not at a desk.
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Netflix spins off DVD business
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roku...especially if you have kids. my kid figured it out by the time he was 3. i bought a second roku box off ebay for $25 last week...a little cheaper than an xbox 360 
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Lithium_Power
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If Blockbuster would get better I'd use them.
Right now, it's a joke.
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Sprawl-zero1eye-
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So I imagine everyone saw this went full circle.
We are back to price hike plus one company, not two.... woo...hoo!!
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they ditched the quickster spinoff? lol
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Greybear1andonly
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Had they been smarter and hiked the price by $2-$4 bucks this year, then next year cited increased postage costs, they could have done another $2 per month for those using the DVD by mail.
They would have lost a lot fewer customers.
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