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Netflix Splits DVD And Streaming Businesses

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Re: Netflix Splits DVD And Streaming Businesses

#131

Post by ABCD_FUFU »

morrow wrote: post #19

"...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." Wow. I had previously thought that their pricing change was forcing consumers to effectively choose between st…

Yep. Also netflix has no value add in the streaming business. Streaming a video just isnt that hard and they are not content owners. The content owners have no incentive to put their stuff on netflix.

The content owners will try to insert ads and cut out middlemen.

On the other hand the customer is shafted big time by being forced to remember what he wants to watch on dvd separate from streaming.

Re: Netflix Splits DVD And Streaming Businesses

#132

Post by bradleyland »

encoderer wrote: post #128
bradleyland wrote: post #121

Earlier quoted context omitted.

Regarding point 1. Netflix just created a huge discoverability problem. We ditched our streaming package and became a DVD-by-mail customer only. Not for lack of want or desire to be a streaming customer though. I'm just not all that crazy about paying their monthly fee for TV shows (I already have cable) and backlist DVD content. We like movies. I can't see how we're not a target customer, but I can't get most new re…

"With completely separate websites, what opportunities will exist to inform me " Your comment here is echoed all over HN and the Netflix blog. Obviously being a separate website in no way prevents them from engaging in that sort of cross promotion. Strikes me as common sense. Comments like yours seem to imply an airgap between the two sites. I haven't read anything official that should suggest that.

That air gap is being created by Netflix. Why would they separate the sites and businesses so distinctly if their intention weren't to create an air gap?

Re: Netflix Splits DVD And Streaming Businesses

#133

Post by maratd »

bradleyland wrote: post #121
encoderer wrote: post #89

Earlier quoted context omitted.

1. I think that's your best point, and it's true that the real test will be if they can grow their streaming catalog enough. 3. It's not as if this HAS to be that way. In a blog comment Hastings said initially both sites would have all existing and current data. We're technologists here, is it hard for anybody here to imagine how sharing that data would work? 6. How will it be a distraction to now have a company that…

Regarding point 1. Netflix just created a huge discoverability problem. We ditched our streaming package and became a DVD-by-mail customer only. Not for lack of want or desire to be a streaming customer though. I'm just not all that crazy about paying their monthly fee for TV shows (I already have cable) and backlist DVD content. We like movies. I can't see how we're not a target customer, but I can't get most new re…

> I can't see how we're not a target customer > I already have cable

Netflix is a direct competitor to cable. I don't have cable and I use their streaming platform exclusively. I am their target customer.

They'll have a tough time convincing the older generation to ditch cable. They know that. So they're ditching you, instead. As things move along, you'll end up in the minority. At least, that's what Netflix is hoping will happen.

Re: Netflix Splits DVD And Streaming Businesses

#134

Post by [deleted] »

morrow wrote: post #19

"...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." Wow. I had previously thought that their pricing change was forcing consumers to effectively choose between st…

[deleted]

Re: Netflix Splits DVD And Streaming Businesses

#135

Post by mrbill »

I never signed up for Netflix until they offered the streaming service, and then never used the physical DVD delivery option - and changed to streaming-only as soon as they made it available. Some of us don't want physical discs. Having such a wide variety of content - even if it's not as varied as the physical media selection - for less than $10 a month is awesome.

Re: Netflix Splits DVD And Streaming Businesses

#136

Post by encoderer »

bradleyland wrote: post #132
encoderer wrote: post #128

Earlier quoted context omitted.

"With completely separate websites, what opportunities will exist to inform me " Your comment here is echoed all over HN and the Netflix blog. Obviously being a separate website in no way prevents them from engaging in that sort of cross promotion. Strikes me as common sense. Comments like yours seem to imply an airgap between the two sites. I haven't read anything official that should suggest that.

That air gap is being created by Netflix. Why would they separate the sites and businesses so distinctly if their intention weren't to create an air gap?

Because they have fundamentally different cost structures, and each will benefit from a dedicated CEO who is accountable for results and responsible for strategy?

You really think that the respective sites will have no integration? Not a single-sign-on user account? Not an "Available on Netflix" link? Why? It makes business sense for both units and it doesn't impede any of the objectives of the spinoff.

Re: Netflix Splits DVD And Streaming Businesses

#137

Post by e40 »

arithmetic wrote: post #83
foobarbazoo wrote: post #62

Qwikster 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…

It would be a debatably good move if the streaming catalog were deep. It is so shallow that during the DVD+streaming price hike/split, I canceled the streaming portion.

And, note that I'm setup perfectly for streaming. I have no TV/cable/dish. I get all my content from downloading TV and getting movies from you. If I could get TV from you on streaming, I'd abandon torrents.

It is really horrible watching Netflix implode like this.

Re: Netflix Splits DVD And Streaming Businesses

#138

Post by Aron »

arithmetic wrote: post #82
omarchowdhury wrote: post #61

Earlier quoted context omitted.

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…

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…

I've been following Netflix for years and 'Focus' is Hastings' singular theme. They dodged cloning Hulu, Redbox, Youtube, various 5$\movie rental options, GameFly, etc. They ruthlessly cut out things like Friends features, used DVD sales.

I'm surprised the reaction here is so negative. Working for large companies the theme is usually waste, and inept decision making. This is a result of the size of the decision apparatus. I would think a lot of people here are fleeing that kind of a work environment or are at least aware of it.

Wearing a customer hat this sucks in the short-term, but perhaps pays off in the long-term if the internal decisions made are substantially sharper. Now you don't have meetings where people are wondering why stupid decision X was made, and the answer comes back 'because of this Y interaction with our legacy mail service' which has no long-term role to play.

It's hard to see from afar the complexity of the decisions that goes on at Netflix HQ every day. I don't think that's going to be appreciated when people are wearing their customer hats. Clearly, the short-term customer perspective is poor.

Re: Netflix Splits DVD And Streaming Businesses

#139

Post by Supermighty »

cookiecaper wrote: post #125
jonnathanson wrote: post #99

Earlier 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…

I'll be interested to see if the split compels media companies to make more content available for streaming. Perhaps that's part of the logic behind splitting out the business; Netflix may have reasoned that it will put more pressure on content holders to license that content for streaming if it won't be available on Netflix at all anymore. In this scenario, it seems that Netflix may be throwing the DVD arm under the…

My first thought was: Now Netflix's streaming content won't be bound by DVD by mail quotas.
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