Reed Hastings responds to criticisms and announces Qwikster • Hacker News Board

Re: Reed Hastings responds to criticisms and announces Qwikster

#21

Post by arohner » Mon, Sep 19, 2011, 4:52 AM UTC

redthrowaway wrote: post #18

zoowar wrote: post #14

Let's hope Netflix can compete without having to splatter advertisements throughout the stream.

I'd be okay with a two-tiered system: a Netflix Light that is cheap and ad-supported (hopefully at the beginning, not interspersed throughout), and a Netflix Full that offers no ads. Mostly though, I just want to have a decent selection in Canada. I was chatting with a friend about the possibility of doing a movie streaming startup, and I couldn't get past the fact that Netflix's biggest problems are not of their cre…

> I just want to have a decent selection in Canada.

As an American, don't worry, the selection isn't very good here either.

Re: Reed Hastings responds to criticisms and announces Qwikster

#22

Post by MartinCron » Mon, Sep 19, 2011, 4:52 AM UTC

flyosity wrote: 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!

Also, video games!

This has the potential to be pretty large, actually, and GameFly is pretty terrible, in my experience.

Re: Reed Hastings responds to criticisms and announces Qwikster

#23

Post by lazerwalker » Mon, Sep 19, 2011, 4:53 AM UTC

To me, the classiest thing about this post is how Hastings is taking the time to personally respond to the blog comments. You don't see that very often from a CEO of a company as large as Netflix, and it's pretty darn cool.

Re: Reed Hastings responds to criticisms and announces Qwikster

#24

Post by MartinCron » Mon, Sep 19, 2011, 4:53 AM UTC

male_salmon wrote: post #12

pyrmont wrote: post #4

While they seem to be going to great pains to be genuine and upfront about what they're doing, why does Netflix need to create a separate company in order to innovate? Apple doesn't have a separate Mac and iPhone business and they seem to innovate just fine. What really seems to be going on is that Netflix is getting ready to spin off its DVD business. That this seems so obvious makes the repeated apologies feel like…

As Reed says, the streaming business is global, but the DVD business is US-only. Maintaining code that services functions that apply in some locales but not others will slow down Netflix's ability to innovate.

The dvd-streaming divide difficulty is nothing compared to the difficulty around licensing content for different territories, as the studios are just a nightmare.

Re: Reed Hastings responds to criticisms and announces Qwikster

#25

Post by Lewisham » Mon, Sep 19, 2011, 4:53 AM UTC

flyosity wrote: 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!

If Netflix/Quikster can get games right, Gamefly should get pretty scared. They can't afford to keep large stock (so you often don't get the game you want), and their turnaround on games is poor (usually about a week round trip, and I live in CA where they have a distribution center).

Oddly, Gamefly just launched a streaming service for the PC, so just as Gamefly is beginning the move away from discs to streaming, Netflix is moving right into that spot.

I don't think game discs have much of a long-term future, but then neither do movie discs either. I wonder if this structuring is not just so that Quikster can be killed or sold to a chump (or someone willing to settle for scaling back the business) as soon as they begin to see the tipping point on streaming.

Re: Reed Hastings responds to criticisms and announces Qwikster

#26

Post by rhizome » Mon, Sep 19, 2011, 4:56 AM UTC

ctingom wrote: post #10

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

There are probably worse gambles than leaving the disc business to redbox and the mom & pops.

Re: Reed Hastings responds to criticisms and announces Qwikster

#27

Post by Lewisham » Mon, Sep 19, 2011, 4:58 AM UTC

Vexenon wrote: 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…

Kind of glad to see video game rentals coming; too bad they're late to the party and will have to compete with Blockbuster, Gamefly, and Redbox.

All of these services have trouble. Blockbuster has a tarnished name (and I personally have never used the service), Gamefly has poor turnaround time and stock, and Redbox has awful stock and a high price.

Netflix/Quikster have been in a prime position to totally disrupt this for years. That they haven't pounced on it sooner has always been odd to me. It's like they consciously decided not to make money.

Re: Reed Hastings responds to criticisms and announces Qwikster

#28

Post by elq » Mon, Sep 19, 2011, 5:00 AM UTC

pyrmont wrote: post #20

male_salmon wrote: post #12

Earlier quoted context omitted.

As Reed says, the streaming business is global, but the DVD business is US-only. Maintaining code that services functions that apply in some locales but not others will slow down Netflix's ability to innovate.

Again, Apple runs businesses (eg. Macs) that operate in some jurisdictions that their other businesses (eg. iTunes) do not. You don't need a structural separation to 'innovate', you need a structural separation to ease a sale of a business.

I honestly don't care how Apple runs it's business. I don't work for apple, I do, on the other hand, work for netflix, and not having to worry about DVDs will be a nice relief.

Re: Reed Hastings responds to criticisms and announces Qwikster

#29

Post by wmf » Mon, Sep 19, 2011, 5:02 AM UTC

lazerwalker wrote: post #23

To me, the classiest thing about this post is how Hastings is taking the time to personally respond to the blog comments. You don't see that very often from a CEO of a company as large as Netflix, and it's pretty darn cool.

It wasn't that long ago that it was "illegal" for CEOs to blog.

Re: Reed Hastings responds to criticisms and announces Qwikster

#30

Post by male_salmon » Mon, Sep 19, 2011, 5:03 AM UTC

pyrmont wrote: post #20

male_salmon wrote: post #12

Earlier quoted context omitted.

As Reed says, the streaming business is global, but the DVD business is US-only. Maintaining code that services functions that apply in some locales but not others will slow down Netflix's ability to innovate.

Again, Apple runs businesses (eg. Macs) that operate in some jurisdictions that their other businesses (eg. iTunes) do not. You don't need a structural separation to 'innovate', you need a structural separation to ease a sale of a business.

I might agree with you if Netflix ran their DVD business in a few other countries. That is not the case however. The DVD business is still profitable. Reed said it's unlikely he'll sell it for a long time.