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Netflix Splits DVD And Streaming Businesses

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Re: Netflix Splits DVD And Streaming Businesses

#31
post #20

"Qwikster will also now offer video game rentals through the mail" While I wouldn't sign up full time for a game rental service I would be interested in getting a game now and then rather than a dvd. Suffice it to say for my needs a dvd in the mail fit my needs exactly and I will continue paying for that. Edit: not to mention from what I hear games always have a long waiting list on other services. I am more than hap…

I'm hoping it comes with the requisite netflix...err qwikster... efficiency that I've come to expect. We tried Blockbuster for this, and it was a nightmare. Getting a game from them was an exercise in patience. We were with them for two months and didn't receive a single one:)

Re: Netflix Splits DVD And Streaming Businesses

#32
post #2

I wonder what Netflix will show for search results that are only available on Qwikster.

Hastings replied to that question in the Netflix blog post's comments: [1]

Question: "If a film I search for on Netflix is not available for streaming, will the website still tell me if the DVD is available? Or must I search twice?"

Reply: "ouch. You'd have to search the second place if we didn't have it in the first place."

[1] http://blog.netflix.com/2011/09/explanation-and-some-reflect...

Re: Netflix Splits DVD And Streaming Businesses

#34

I think this is a good move simply because the two divisions have contradictory goals at this point. For example, the Qwikster division should be looking at finding ways to deliver DVDs quicker (Kiosks for example). But that's not something that would ever occur to Netflix because they're focused on streaming as the future. Which is where the contradiction comes in. It is hard to run a business unit when the goal of…

I don't think any shareholders of consequence are going to think they just made this decision a day ago. Maybe they announced it after the stock plummeted because the assumption is it won't go down that much further, where a 2nd announcement after it rebounded might send it down yet again.

Re: Netflix Splits DVD And Streaming Businesses

#35
post #30

I'll throw it out as a side note, because in all the discussions I've read on Netflix of late no one seems to mention it: Netflix has FANTASTIC kids content available for streaming. My kids would revolt if we cancelled our service. That alone guarantees my business until there is a truly compelling replacement. I cannot believe we're the only family like this. And while this is probably not a large enough market to s…

Totally agree. It was a no brainer to cancel the DVD side of our subscription, but the streaming, no way.

Re: Netflix Splits DVD And Streaming Businesses

#37
post #8

The elephant in the streaming office is the lack of blockbuster titles, many of which are only available through their DVD by mail business. If they're betting everything on streaming i'm guessing (hoping) that they've also figured out a solution to this problem. Otherwise, they've lost the big benefit of credibility that DVD by mail brought to their service.

This split might be what they needed in order to secure more streaming deals. Time will tell.

Re: Netflix Splits DVD And Streaming Businesses

#40
In theory, however, Qwikster doesn't have to limit itself to DVD's in the future. If it's real focus is shipping speed for items that are rented (or more likely purchased), it could expand into other product lines. Speed of shipping is a process in and of itself, something that very few companies, like Amazon, have gotten down.
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