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Netflix splits streaming and DVD by mail service; latter to be called "Qwikster"

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CronosBlade

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http://blog.netflix.com/

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”.
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Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done
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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.
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Personally, as someone who uses Gamefly heavily, I will take a look at their options, but my advantage with Gamefly is living in a shipping city so I get 1 day turnarounds.
 
From http://qwikster.com/

soon1.jpg


huh?
 
LastWindow said:
Is Netflix still getting new releases a month later? That's why I stopped using them.
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that probably won't change; IIRC I read somewhere that retailers and distributors have pushed for those delays to protect dvd/br sales. When Eat, Pray, Love released I saw several displays at Walmart marked 'get it one month before netflix' or something to that effect.
 
Shit decision that makes movie hunting more inefficient.

I want one UI to find a movie, not 2. There is literally zero reason to keep Netflix's DVD service versus a competitor now.
 
Goreomedy said:
I don't get the name. Represents the speed at which a company can throw itself into a dumpster?
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maybe it's to save face for the netflix brand name...perhaps they're gunna start dropping the money for better streaming rights and when the dvd-mail system starts to tank it won't drag the netflix name down with it.
 
As someone who only uses the streaming service, this decision makes perfect sense to me.

Netflix should be focusing solely on remaining competitive in the movie/tv streaming market if it wants to survive. There isn't much innovation left to be had in the dvd-by-mail industry, and therefore requires a lot less resources.
 
The only way this works for me is that the two websites integrate so that if I can't find a movie on Netflix but it is available on qwikster, then it offers to automatically add it for me, and viceversa. Also, recommendations must cross-list as well.
 
Well okay but I don't understand the name. Netflix Qwikster or just Qwikster?

It's pretty cool that they now carry video games though. I'm sure the people who use GameFly and Netflix would rather just get.. uh, Qwikster.
 
i dont like the idea of 2 websites.. kind of annoying tbh

one of my beefs with streaming was that movies from my "physical" queue wouldnt automatically be added to streaming when it was available.. i wonder if this will be even worse now
 
The non-integration of Netflix and Qwikster is terrible for consumers, but it makes more sense if they're aiming to sell or spin the latter into a completely similar business.
 
Zzoram said:
Stupid to call their mail service a new name, Netflix has brand recognition
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That brand recognition is why they are doing this. They are trying to move netflix into a content creator/distributor on a worldwide basis instead of just operating only in America.
 
WTF is going on at Netflix? They keep making dumb announcements. Heck that's two crappy things today. First them removing saved for later/no longer available for streaming content and now this.
 
I never understand why companies rename themselves after being established with well known and beloved names. It reminds me of Comcast becoming "Xfinity" - who thought that was a good change?!
 
CrocMother said:
As someone who only uses the streaming service, this decision makes perfect sense to me.
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I love this kind of attitude.

It offering both in no way impacts you ... but separating the services actually hurts those that use both.
 
Karsticles said:
I never understand why companies rename themselves after being established with well known and beloved names. It reminds me of Comcast becoming "Xfinity" - who thought that was a good change?!
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They did that change because Comcast is synonymous with crap, kinda like Blackwater changing their name to Xi or something.
 
Marty Chinn said:
WTF is going on at Netflix? They keep making dumb announcements. Heck that's two crappy things today. First them removing saved for later/no longer available for streaming content and now this.
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Wait ... what did I miss? wtf?!?!
 
not integrated between them? Ugh that's annoying. I like searching one list to see if its available for streaming, bluray or dvd. And the ease of jumping between the two.
 
Netflix becomes successful through being premiere internet mail-in DVD rental provider, Netflix introduces Instant Queue, people like Instant Queue way more than mail-ins, Netflix wants more money from package deals so they separate instant and mail-in bundles, see that everyone and their fucking brother cancels mail-ins, rebrands mail-in service.


Mmmmk.
 
I know this has probably been in the works for a while, but all these changes are making Netflix look like it's run by scatterbrains.
 
Well let's see if it's better than gamefly. Though in my experience, that won't be too hard as long as they have a decent selection and the price is kept down.
 
Man, what? That blog post read like a DVD by mail eulogy before..."HEY HERE'S A WHOLE NEW WEBSITE AND TEAM FOR DVDS BY MAIL."

So weird.
 
Ryaaan14 said:
Netflix becomes successful through being premiere internet mail-in DVD rental provider, Netflix introduces Instant Queue, people like Instant Queue way more than mail-ins, Netflix wants more money from package deals so they separate instant and mail-in bundles, see that everyone and their fucking brother cancels mail-ins, rebrands mail-in service.

Mmmmk.
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I think you totally have misunderstood what's happening. The streaming was always the end-goal of Netflix, even from the very start. That's why they called it Netflix.

This is probably related to the breaking up of package deals, as movie studios have started to play hardball with them. If I had to guess, I'd say they want to separate the businesses to protect each half of the business from the deals they're going to have to make for the other.

In retrospect, it's clear they broke up the packages so that they could do this.
 
Netflix is screwed, at any rate. The Starz deal propelled the streaming service to this point, but that's not happening again. The megacorps see the value in streaming licenses and will charge billions, not have their offers accepted anywhere, and instead focus on internal streaming strategies. We'll be left with a fragmented market full of overpriced streaming services with subpar selections.

The disc market would be fine except that everyone has a taste for the superior convenience of digital distribution now, plus these restrictions being put in place on new releases.
 
EviLore said:
Netflix is screwed, at any rate. The Starz deal propelled the streaming service to this point, but that's not happening again. The megacorps see the value in streaming licenses and will charge billions, not have their offers accepted anywhere, and instead focus on internal streaming strategies. We'll be left with a fragmented market full of overpriced streaming services with subpar selections.

The disc market would be fine except that everyone has a taste for the superior convenience of digital distribution now, plus these restrictions being put in place on new releases.
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And it's a shame really. Right when you thought digital distribution is the future.
 
Netflix has lost 40% of their stock value since the price hike increase in July..

They lost 19% alone on Thursday when they mentioned that they lost 600,000 subscribers which was WAY more than they anticipated. In fact they predicted that they would lose a ton but they lost way more than those predictions.


Splitting is now just causing customer confusion. Numerous companies on billing statements, and having to manage queues on two separate sites without the sites talking to each other is absolutely bonkers.

Wow @ Netflix.. just wow..
 
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