what a terrible idea. the best part of Netflix is that it was integrated between DVD and streaming queues. dfm. how much does Amazon cost with Prime?
Prime is $79/year.
Netflix Splits DVD And Streaming Businesses
111–120 of 206 posts
Re: Netflix Splits DVD And Streaming Businesses
#112Earlier quoted context omitted.
Disclaimer: Netflix employee here The main reason for the split is the realization that streaming service and DVD service are two completely different businesses that need to grow in completely different ways. For example, in case of streaming service, we've just expanded to Latin America and the Caribbean (to 43 new countries). In case of the DVD service, we're adding a new video games catalog. DVD service is still…
From the customer's perspective, they are not two separate businesses. They are one, strong business (well, were). Streaming is most valuable when DVD is (a) there as a backup, and (b) managed with the same system. Netflix has seriously decreased the value of their streaming offering by separating out the DVD and de-integrating their systems. There is basically no reason to pay for Kwikster now (terrible name BTW), a…
You don't speak for all Netflix customers when you offer your perspective.
I joined Netflix because of streaming and I prefer to look at streaming only. When I joined netflix I got a DVD and didn't return it for a year. I didn't want to return it because I didn't want to get another DVD. In search results I never wanted to see the DVD results. I wanted to see what I could watch now. Content is such a key part of this. If the streaming service had the same or more content than the DVD business, nobody would care. But since they are still building that collection and struggling with content owners, people are freaking out.
Time will tell whether this was a stupid idea for the market at large. As a streaming customer, I'm indifferent. As a tech pundit, I think it was an important strategic move and I applaud Netflix.
Re: Netflix Splits DVD And Streaming Businesses
#113This reminds me of Apple killing the floppy.
Anyway, this is all about negotiations to get more content in the streaming service. If newer movies and more tv shows appear in the streaming service, no one will care about DVDs by mail.
Re: Netflix Splits DVD And Streaming Businesses
#114As a once happy customer turned unhappy customer for a variety of reasons, I believe this signals the beginning of the end for Netflix. By the way, thanks for destroying Blockbuster on the way down. I had more options 2 years ago than I do now.
It's interesting that they save the big price hike until after they bankrupted Blockbuster. Well played, in an evil-genius sort of way.
Re: Netflix Splits DVD And Streaming Businesses
#115Qwikster is a terrible name, and this is a terrible move. Hastings is now in competition with that guy running HP to see who can destroy their company first. Maybe Ballmer will get in the game and spin off Windows/Office from Microsoft, and rebrand them "Facetown", while proclaiming Bing to be the future of the company. Unbelievable. Update: I predict Qwikster is dead and buried within 5 years, and someone else pushe…
Netflix employee here. I've been reading all the comments here and at Reed's blog to understand what everyone has to say about the split. Internally, we've known about the split for some time now. Why do you think this is a terrible move? Your comment has a lot of unflattering comparisons, but doesn't explain why the move is stupid. Also, you're probably right that DVD as a service will not last forever, and Reed und…
Just to share my personal experience: My wife and I have been Netflix customers for years. Streaming is pretty convenient for us, but two major problems: 1) lack of content and 2) lack of subtitles / closed captions. Captions are important because we watch movies at night, after the kids are in bed. That means we keep things are quiet enough that you occasionally miss a line of dialog. Because of those two issues we're back to DVDs in the mail. Here's my point:
While the services were integrated we could play with the online service (wait for it to improve) while still getting DVDs through the mail. It didn't cost any extra to try a streaming movie or two. Now that they are separate, checking up on the online service has a much higher cost, both monetarily and in terms of effort. Personally I'm disappointed, I liked streaming a lot, but for us it just wasn't quite there yet.
As others have said, the two services are complementary. I might like to know that I could watch a movie instantly instead of waiting for it in the mail, even if that's what I'd planned to do. Or that I could get a DVD in the mail because it isn't available for streaming.
As a customer I feel Netflix cares more about promoting streaming than keeping me as a customer. Rather than holding the door open so I can take my time converting to online content, I'm being pushed. Maybe right into a the arms of a competitor, because I'm not feeling the love from Netflix.
Re: Netflix Splits DVD And Streaming Businesses
#116Earlier quoted context omitted.
"...A lot of the movies are not available for streaming." Quite a lot, actually, including the majority of new releases. And this will only become more evident in the eyes of streaming subscribers when they no longer see most of the new titles listed in searches. (Even the presence of those "Only available on DVD" titles in streaming-service SERPs lent a sort of subconscious, psychological indication of the robustnes…
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I think you misread my post. I was saying that quite a lot of new releases are not available on Netflix's streaming service.
Re: Netflix Splits DVD And Streaming Businesses
#117It seems I'm in the minority who thinks this is an over the top reaction to Wall Street pressure. It was clear for a number of years now that Netflix saw streaming as the future. But cutting off the DVD business like that... it's extreme. A lot of the movies are not available for streaming. Yes, their streaming portfolio is probably still the best (and has excellent children's content, my son watches it every night)…
The attack surface for other companies has just doubled If anything, that is an underestimate. I really can't understand what they are thinking. Since I am interested in both DVD and streaming, up to now I was completely locked into Netflix because of the integrated system - my "Instant" queue is just the subset of my DVD queue that is streamable. If they break that link, and I derive no gain from being BOTH a Netfli…
What's to stop you from switching to Amazon? Have you tried watching a movie on Amazon? Way less usable and its hard to find movies sometimes. Netflix has a way better interface and what I find myself doing is checking on Netflix first, and then only if they don't have it, do I go to Amazon.
Re: Netflix Splits DVD And Streaming Businesses
#118Earlier quoted context omitted.
While there may be some business sense behind it, as a customer, I don't see any benefit for me. It may make things easier for Netflix, but how does it make anything better for me as a customer? This is the second time Netflix has made an announcement about changes that were seemingly for some good reason, but left customers bewildered.
If you had to pick between DVD and streaming service, and make one of them phenomenally better than what it is now, which one would you pick? DVD, because everyone knows and loves it? Or streaming, because it's growing rapidly? You get to pick one. With the split, Netflix gets to focus entirely on streaming - make it better for the customer. Which means, more (and better) content, faster and better streaming service,…
How does splitting them up make them each phenomenally better? Why should the customer care about Netflix's internal organization? Make the same changes, just keep the top level name and details like accounts/recommendations.
If I buy a Macbook Pro it's from Apple and if I rent a movie from the iTunes store it's from Apple... They are completely different business units internally, but to the customer it's the same company and I can use the same account for either purchase.
Re: Netflix Splits DVD And Streaming Businesses
#119It seems I'm in the minority who thinks this is an over the top reaction to Wall Street pressure. It was clear for a number of years now that Netflix saw streaming as the future. But cutting off the DVD business like that... it's extreme. A lot of the movies are not available for streaming. Yes, their streaming portfolio is probably still the best (and has excellent children's content, my son watches it every night)…
Another thing. Not all users have a device connected to their TV that works with Netflix (like an Xbox). Nor do those same people want to watch a movie or a TV show on their computer. Those people request DVDs. I don't see the issue with keeping everything under one brand. Netflix became popular because of their DVD-in-the-mail service. It's a shame to spin that off into a sub-par seeming brand. Just keep it all unde…
> Another thing. Not all users have a device connected to their TV that works with Netflix (like an Xbox).
Some TVs and most Blu-Ray / DVD players these days play Netflix without extra anything hooked in. Netflix has done a really good job making its streaming offering available on a TV without additional hardware or tech skill.
Re: Netflix Splits DVD And Streaming Businesses
#120Seems pretty obvious that the plan here is to sell the DVD business (perhaps to PE), raise capital, and use it to do a combination of original content creation and for leveraged with the main studios to get the same premium titles into the streaming service that would already be available on the DVD service.
However if I'm right the CEO Reed isn't being any more forthcoming or communicative about his true plans then he was before.