NetFlix Shoots Its Own Foot

 Posted by on 19 September 2011 at 1:00 pm  Business, Film
Sep 192011
 

NetFlix announces a major change to its business model:

…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”.

… 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. … 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.

My reaction? I immediately cancelled my streaming account — something that I didn’t even consider after the price increase a few months ago. I don’t use that nearly as much as the DVDs, and I’m just not interested in the hassle of managing two separate queues. Instead, I’ll likely check out Amazon’s streaming service.

Based on the 11,000-plus comments, I’m not alone.

   
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