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Reed Hastings responds to criticisms and announces Qwikster

blog.netflix.com

41–50 of 112 posts

Re: Reed Hastings responds to criticisms and announces Qwikster

#42
post #10

I bet a lot of customers evaluate Hulu and Redbox now.

Why?

Current Netflix DVD+streaming customers will seamlessly have Netflix+Qwikster accounts. Those who care about just DVDs or just streaming would probably have already left or already transitioned to the appropriate Netflix account option which would leave them with a Netflix or Qwikster account in the end, no action on their part.

So how would this move motivate anyone who hasn't already left to look at other services? I've seen other people on HN complain about needing to maintain two accounts, but switching to Hulu+Redbox has that same downside, removing that as a motivating factor to look at those options. Switching to just one has the downside of losing recommendations and setting up a new account. I don't see why anyone who hasn't already left Netflix after the pricing changes would leave because of this decision.

Re: Reed Hastings responds to criticisms and announces Qwikster

#43

I have to say, I think they blew it with this one. Spinning DVD-by-mail off into a separate business might make sense, but I just don't get splitting the ratings/suggestions up by not integrating the services. Considering that one of Netflix's greatest strengths is the (very good) rating system this is a questionable decision, and I think they'll catch a lot of heat for it from the crowd that maintains accounts on bo…

Netflix has 8 years worth of ratings I've made, so it's gotten very good at suggesting me new movies.

Amazon is the only other company that has a longer history of what I buy and what I like, and they're making some decent inroads into streaming movies now too. As soon as Amazon beefs up their selection and gets streaming videos available on my Xbox 360, I'm going to find it hard to justify Netflix altogether.

Re: Reed Hastings responds to criticisms and announces Qwikster

#44
post #32

This move is uncomfortable but necessary. The two businesses are different at every level (supply chain, cost structure, technology, user experience, etc.), and the DVD business is on its way out over the nest 3-5 years. Better to disrupt yourself now than wait for some upstart to do it and react.

And yet somehow Amazon manages to stream video and sell DVDs at the same time. Heck, they sell lingerie and organic tea at the same time.

They're a generic store. Netflix doesn't want to be the equipment of an online department store. They're a boutique shop that has gradually realized they have two competing interests under the same house, and would rather have two shops side by side than one.

Re: Reed Hastings responds to criticisms and announces Qwikster

#45
post #32

This move is uncomfortable but necessary. The two businesses are different at every level (supply chain, cost structure, technology, user experience, etc.), and the DVD business is on its way out over the nest 3-5 years. Better to disrupt yourself now than wait for some upstart to do it and react.

How are they any different for the user? They both accomplish the same thing: a subscription service for watching movies.

Re: Reed Hastings responds to criticisms and announces Qwikster

#46
post #8

This is not something you see CEOs write every day. Hell, this isn't something you see CEOs write ever in their careers. It took a lot of guts to write it, and regardless of the huge controversy surrounding their pricing strategies, I hope that this split succeeds. Also, video games!

Qwikster is a joke and will be dead or acquired in 5 years.

And Netflix streaming is not ready to carry Netflix forward. We won't be subscribing to Qwikster, and we're already looking for alternatives on the streaming side -- most likely, Amazon, who would never do something this idiotic.

Re: Reed Hastings responds to criticisms and announces Qwikster

#47

Earlier quoted context omitted.

And yet somehow Amazon manages to stream video and sell DVDs at the same time. Heck, they sell lingerie and organic tea at the same time.

They're a generic store. Netflix doesn't want to be the equipment of an online department store. They're a boutique shop that has gradually realized they have two competing interests under the same house, and would rather have two shops side by side than one.

[deleted]

Re: Reed Hastings responds to criticisms and announces Qwikster

#48
post #11

I really, really liked the way Hastings wrote this post. It takes a lot to own up to your mistakes, but he seems dedicated to making Netflix succeed, and the decision to split the service into two is really... interesting, to say the least. I'll probably stick with streaming and forget about physical media, to be honest. It's much more convenient to drive to the Redbox down the street than wait a few days and have to…

He's not "owing up", that's pure PR. This was hatched back in May, and it was stupid then, stupid now, and will be stupid 5 years from now when what's left of Qwikster is sold off in a fire sale and Netflix shareholders start wishing they had bought Yahoo!

Re: Reed Hastings responds to criticisms and announces Qwikster

#49

Earlier quoted context omitted.

Just out of curiosity, why would maintaining two accounts be so painful? If that were so, wouldn't it be equally painful to maintain different social network accounts (assuming you have two or more).

Netflix is the one recurring bill on my credit card. I like the company and think it has great customer service. I trust the company. I don't want multiple recurring charges on my credit card. The more paid accounts a person has the more likely it is that an account will be forgotten about. Also, it would be a pain to find out a movie isn't available for streaming and then having to login to another account to put th…

I did trust the company. That's gone now. All that time we've spent rating stuff? Spun off to this POS Kwikster company, and no longer integrated.

It's rare that companies this size make such stupid moves; this is one of those times.

Re: Reed Hastings responds to criticisms and announces Qwikster

#50

Earlier quoted context omitted.

Billing will be separate, which is a minor annoyance, but an annoyance nonetheless. The bigger issue is splitting my ratings and thus my suggestions. I already ignore other places to rate movies since only netflix provided a tangible benefit to me. Split it, and it won't.

With billing, most of us already maintain different accounts with different e-commerce sites. One more is not that bad. Ratings on either Qwikster or Netflix will benefit you because of the improved recommendations. Yes, it's a shame they won't be integrated, but overall the split will benefit the company and its customers.

Do you work for Netflix? On what planet does any of this make sense for customers.

Hastings is the very definition of stupid: hurting himself, his company, and his customers -- all at the same time, and totally oblivious to it all.

His method to "fix" his previous mistake is to make an even bigger one. Unbelievable.

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