Regardless, I think this move is based on bad assumptions about the future of entertainment. The great thing about DVD's, as Hastings mentioned in his letter, is that basically any movie you could ever want to see is on DVD. And if it's on DVD, anyone can get it to you. You can buy it at a store, rent it from the library, or rent it from any number of rental companies. Netflix was the best because it had basically every DVD. It's collection was massive and it provided good service on top of that. I've been with Netflix since 2003 and I have not had a single complaint until this year. Anyway, this Qwikster move is based on the assumption that DVD's are going the way of the dodo bird, and that Internet streaming is the future. That will not be the case. Like I said, the great thing about DVD's is that anyone can sell them or rent them, while streaming often involves exclusive contracts. Netflix's streaming selection will never be as extensive as their DVD collection. There are too many competitors. It honestly worries me.
I also take offense to the fact that Hastings couched this new move in an apology about how poorly he executed the last move. Netflix never changed anything for years, and then when they did change things it was to give more stuff. First some hours of free streaming, then better streaming, then unlimited streaming, then straight-to-TV streaming, etc. These last moves, which are one on top of the other (the last announced move has not even taken effect yet, right?) take stuff away from us.
That's the crux of it to me. The current streaming selection is laughable if the real goal is to move away from mailed dvd's.
Joined: Tue Nov 23, 2004 6:28 pm Posts: 5361 Location: St. Paul Gender: Male
in the past three months netflix customers have been told:
prices for "bundles" will increase by up to 60% starz streaming content will cease going forward there will be less convenience in managing both dvd-by-mail and streaming content
there has been no "good" news for current subscribers during this time. subsequently, they've lost 1 million customers (4-5% of total base) with the possibility of more given this new announcement.
i am real curious to see how this all plays out. the only difference now is i'll be on the outside looking in. if, by some chance, the streaming portion gets significantly improved, i'll buy back in. but, until then, i guess i'll just have to live without every cheers episode at my immediate disposal.
I'm disappointed in this idea, but I had no bones whatsoever about the price hike. I don't have cable, so maybe that's some of it, but when I did it was WAY more of a waste of money than Netflix could ever be.
In the next few years, Qwikster will either be out of business or will completely dissolve their DVD-by-mail portion of the business (assuming they can make moves to add other aspects). It will sell its assets and either dissolve as a company or focus on gaming (which they plan on integrating into the service). Many of the employees and executives will be brought back to Netflix. Some will be released.
There is simply no other explanation for the change. It makes more sense to keep the businesses attached, allowing for easier logistics, fewer employees, and the ability to cross-sell. The only scenario that warrants separation is the eventual and planned demise of Qwikster.
As odd as it may sound, closing down an entire company is much easier and less expensive than closing down a large division of a company. Liabilities are easier to manage. It makes managing public relations fundamentally more simple as Netflix would not have to show losses or firings from the parent company. Tax challenges can be averted.
this is basically what i figured was happening when i first heard this news. it's all about keeping the netflix name nice and shiny.
Joined: Sun Oct 17, 2004 4:51 am Posts: 6944 Location: Long Island Gender: Male
I really think netlfix is going to shoot themselves in the foot here. I recently dropped the dvd service I was on the 11.99 plan which got the 60% bump. I rented mostly new releases, so I kept the streaming (for now) and will get movies from red box. I can rent 4 blu ray new releases a month from red box and keep the streaming and it will only cost me $14.35. So I went with the better deal. Netlix is not only no longer cheap, but it's not as accessible as before.
Joined: Tue Sep 13, 2005 7:02 pm Posts: 6405 Location: DC Gender: Male
Never mind. It looks like blockbuster has a pay per view model with their streaming / on demand. That obviously could get super pricey, so for the time being looks like I'll still roll with Netflix and just wait and see...Oh, plus they don't support PS3, so that's a deal breaker right there.
netflix streaming is great for the first 3 months or so, then its really bad. the thing i like about DVDs is being able to watch stuff like The Wire or Dexter or old good movies (not the direct to video crap thats on streaming).
think i might just switch to Hulu + Redbox and just pirate tv show seasons i cant get.
There is no such thing as 'unlimited streaming'. Your streaming is capped by your ISP.
As I posted in this thread over 2 years ago, when physical media goes, you be moved to a pay-per-view model. That's the only pay where Netflix's future revenue growth could come from, exclusive deals with studios and a pay-per-view model.
Joined: Sun Oct 17, 2004 7:19 pm Posts: 39068 Location: Chapel Hill, NC, USA Gender: Male
Man, now that streaming is turned off, my recommendations have improved greatly.
_________________ "Though some may think there should be a separation between art/music and politics, it should be reinforced that art can be a form of nonviolent protest." - e.v.
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