Netflix: An Explanation and Some Reflections

theDreamer · 09-18-2011, 11:54 PM

http://blog.netflix.com/2011/09/expl...flections.html

Quote:

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”.

We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

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. Other improvements will follow. Another advantage of separate websites is simplicity for our members. Each website will be focused on just one thing (DVDs or streaming) and will be even easier to use. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated. So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn’t show up on Netflix, and vice-versa.

Jamaica · 09-18-2011, 11:59 PM

interesting how they lost 500k customers last month due to the price increase

chanh55 · 09-19-2011, 12:18 AM

that sucks...

Trips · 09-19-2011, 12:33 AM

Reported!!

theDreamer · 09-19-2011, 07:21 AM

Quote:

Originally Posted by Triple's

Reported!!

Hater....
I see the reasoning he wants to do this, but it will be suck for this who have both services.

Zaggeron · 09-19-2011, 07:28 AM

The strangest part to me is the name change of the DVD by mail division. "Qwikster" ...W.T.F. This is like adding salt to injury by separating the companies, billing, websites ...

shadoquad · 09-19-2011, 07:51 AM

Growing pains. They became so big so fast, and they dominated for so long... The increase and the break with Starz are eating them alive. I've retained my streaming acct with them, but I'm no "Qwikster" member. I don't know if it will work or not, but obviously they had to make this move for some big reason. Will it work? Only time will tell.

Will the PR work from this apologetic blog post and the emails sent? Only time will tell.

RandyD · 09-19-2011, 07:54 AM

i quit both... farktards.

shadoquad · 09-19-2011, 07:57 AM

Quote:

Originally Posted by RandyD

i quit both... farktards.

I quit the delivery svc, since I was paying extra for blu-ray but really utilizing the streaming capability about a thousand times more often than watching disks. So, the only change for me, really, is that I don't pay extra for blu ray and only have the streaming selections. Since my queue is overflowing, I'm not running short of things to watch any time soon.

Zaggeron · 09-19-2011, 08:08 AM

I probably get three disks a week via the mail and likely watch around a dozen hours of streaming. But I couldn't go to streaming along since most of the stuff I stream I likely wouldn't rent by mail. I'm actually less upset by the price increase than I am from this slimy attempt at PR.

Only time will tell, but I think they distanced themselves from their core DVD service so they can see if it can go belly-up. If you ask me, from a marketing perspective, what reason would they have to separate and change the name to something that rhymes with "Trickster" if they weren't planning on abandoning it.

theDreamer · 09-19-2011, 08:15 AM

The DVD division will die in a little over five years. From high fees to mail discs, rapid growth in streaming, to debt caused this move. The company wants to keep the main name with the truly growing division and split off the dead leg.

Though I find it interesting that so late in the game they will offer video game rental. This could honestly bring a new huge revenue market to the company since video game streaming services are still years away from offering a viable service. I honestly might be using that service since I do not buy a lot of games but would like to rent some just to play a few.

shadoquad · 09-19-2011, 08:21 AM

Quote:

Originally Posted by theDreamer

The DVD division will die in a little over five years. From high fees to mail discs, rapid growth in streaming, to debt caused this move. The company wants to keep the main name with the truly growing division and split off the dead leg.

Though I find it interesting that so late in the game they will offer video game rental. This could honestly bring a new huge revenue market to the company since video game streaming services are still years away from offering a viable service. I honestly might be using that service since I do not buy a lot of games but would like to rent some just to play a few.

I guess it's competition for gamefly? If you can get movies and games for the same cost as a gamefly subscription?

Mr&Mrs · 09-19-2011, 08:27 AM

Ya I just read this email, I am only going to use the streaming service now myself. If the game rental part looks good then maybe I will give it a shot.

Zaggeron · 09-19-2011, 08:29 AM

I understand that the steaming division is really the method of the future, but I wonder if that future is here yet?

The "net neutrality" debate and corresponding legislation is far from over. There have been many attempts by internet companies to limit or charge for extra bandwidth. With no control of the distribution mechanism for their streaming service Netflix is at the whim of these external factors.

I hope it doesn't happen, but I can see major showdowns between companies like Netflix and major ISPs over bandwidth consumption. Not to mention the fact that major studios over-estimate the value of their intellectual properties with respect to Netflix's steaming business model ...

It actually boils down to -- I hate change that has not specifically been approved by me!

shadoquad · 09-19-2011, 08:33 AM

Quote:

Originally Posted by Zaggeron

I understand that the steaming division is really the method of the future, but I wonder if that future is here yet?

The "net neutrality" debate and corresponding legislation is far from over. There have been many attempts by internet companies to limit or charge for extra bandwidth. With no control of the distribution mechanism for their streaming service Netflix is at the whim of these external factors.

I hope it doesn't happen, but I can see major showdowns between companies like Netflix and major ISPs over bandwidth consumption. Not to mention the fact that major studios over-estimate the value of their intellectual properties with respect to Netflix's steaming business model ...

Netflix streaming has already become the preeminent bandwidth hog.

Quote:

Originally Posted by Zaggeron

It actually boils down to -- I hate change that has not specifically been approved by me!

09-19-2011, 12:18 AM	#3 (permalink)
chanh55 Base Member Join Date: Aug 2009 Location: Vancouver, WA Posts: 56 Drives: 09 Nissan 370Z Rep Power: 16	that sucks... __________________ \| Stillen Gen 3 Intake \| Stillen 304 Headers \| Stillen HFC \| Stillen CBE\| Nissan GTR Start Button \| Nissan Sport BBK \| Tein High Tech Lowering Springs \| \| Z1 Oil Cooler Kit \| Varrstoen ES 2.2.2 \| Continental Extreme Contact DWS \|

09-19-2011, 12:33 AM	#4 (permalink)
Trips Administrator Join Date: May 2009 Location: Disneyland, Ca Posts: 8,732 Drives: 🔰 Rep Power: 10	Reported!! __________________

09-19-2011, 07:28 AM	#6 (permalink)
Zaggeron A True Z Fanatic Join Date: Jan 2010 Location: Austin, TX Posts: 1,951 Drives: '10 370ZR '13 BRZ Rep Power: 19	The strangest part to me is the name change of the DVD by mail division. "Qwikster" ...W.T.F. This is like adding salt to injury by separating the companies, billing, websites ... __________________ 2010 Platinum Graphite 370z Roadster:Touring/Sport 2013 Subaru BRZ Limited

09-19-2011, 08:08 AM	#10 (permalink)
Zaggeron A True Z Fanatic Join Date: Jan 2010 Location: Austin, TX Posts: 1,951 Drives: '10 370ZR '13 BRZ Rep Power: 19	I probably get three disks a week via the mail and likely watch around a dozen hours of streaming. But I couldn't go to streaming along since most of the stuff I stream I likely wouldn't rent by mail. I'm actually less upset by the price increase than I am from this slimy attempt at PR. Only time will tell, but I think they distanced themselves from their core DVD service so they can see if it can go belly-up. If you ask me, from a marketing perspective, what reason would they have to separate and change the name to something that rhymes with "Trickster" if they weren't planning on abandoning it. __________________ 2010 Platinum Graphite 370z Roadster:Touring/Sport 2013 Subaru BRZ Limited

09-19-2011, 08:15 AM	#11 (permalink)
theDreamer A True Z Fanatic Join Date: Feb 2009 Location: Texas Posts: 30,879 Drives: 370z Rep Power: 4211	The DVD division will die in a little over five years. From high fees to mail discs, rapid growth in streaming, to debt caused this move. The company wants to keep the main name with the truly growing division and split off the dead leg. Though I find it interesting that so late in the game they will offer video game rental. This could honestly bring a new huge revenue market to the company since video game streaming services are still years away from offering a viable service. I honestly might be using that service since I do not buy a lot of games but would like to rent some just to play a few. __________________ theDreamer's Z // Fast Intentions // Uprev // GTM // HKS // TEIN theDreamer's Silvia // URAS // GREDDY Houston Zs // Facebook // Twitter // Instagram

09-18-2011, 11:59 PM	#2 (permalink)
Jamaica A True Z Fanatic Join Date: Mar 2010 Location: SoCal Posts: 15,362 Drives: Under boost Rep Power: 74	interesting how they lost 500k customers last month due to the price increase

09-19-2011, 07:51 AM	#7 (permalink)
shadoquad A True Z Fanatic Join Date: Apr 2010 Location: . Posts: 42,608 Drives: . Rep Power: 3887	Growing pains. They became so big so fast, and they dominated for so long... The increase and the break with Starz are eating them alive. I've retained my streaming acct with them, but I'm no "Qwikster" member. I don't know if it will work or not, but obviously they had to make this move for some big reason. Will it work? Only time will tell. Will the PR work from this apologetic blog post and the emails sent? Only time will tell.

09-19-2011, 07:54 AM	#8 (permalink)
RandyD A True Z Fanatic Join Date: Mar 2011 Location: Potomac Falls, VA Posts: 2,977 Drives: 2010 370z 7AT Roadst Rep Power: 21	i quit both... farktards.

09-19-2011, 08:27 AM	#13 (permalink)
Mr&Mrs A True Z Fanatic Join Date: May 2010 Location: Tampa Posts: 4,207 Drives: RZ34 Rep Power: 31941	Ya I just read this email, I am only going to use the streaming service now myself. If the game rental part looks good then maybe I will give it a shot. __________________ Project Z <--Click - Check out the link too many mods to list!

09-19-2011, 08:29 AM	#14 (permalink)
Zaggeron A True Z Fanatic Join Date: Jan 2010 Location: Austin, TX Posts: 1,951 Drives: '10 370ZR '13 BRZ Rep Power: 19	I understand that the steaming division is really the method of the future, but I wonder if that future is here yet? The "net neutrality" debate and corresponding legislation is far from over. There have been many attempts by internet companies to limit or charge for extra bandwidth. With no control of the distribution mechanism for their streaming service Netflix is at the whim of these external factors. I hope it doesn't happen, but I can see major showdowns between companies like Netflix and major ISPs over bandwidth consumption. Not to mention the fact that major studios over-estimate the value of their intellectual properties with respect to Netflix's steaming business model ... It actually boils down to -- I hate change that has not specifically been approved by me! __________________ 2010 Platinum Graphite 370z Roadster:Touring/Sport 2013 Subaru BRZ Limited

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