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Netflix Splits DVD And Streaming Businesses

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21–30 of 206 posts

Re: Netflix Splits DVD And Streaming Businesses

#22
Gasp, this is turning into a joke!

I had Netflix for a few months, I used it to watch the entire Battlestar Galactica. After that, I went through and searched for 30 different movies to watch, and they weren't available, and I'm not talking about new movies. None of the Indiana Jones', Star Wars', Rockies, Bladerunner, etc. Now with the Starz debacle, and with content providers getting ready to pound them with price increases, Netflix is in real trouble.

Yes, streaming is the way to do it. I love streaming. But I don't think it will be through Netflix. This sounds like a company in its death throws.

I simply don't understand why they would split themselves up into 2 companies. The only reason why I can think of why they would cut themselves into 2 companies, is so that the content providers can't use the DVD business' cash flow to pay for the content. So content providers can't charge an arm and a leg because the cash flow of the streaming side would be much smaller.

However, the miscalculation here is that content providers can simply make their own content available themselves through streaming. Which is already happening in other continents, and even in the US through Google, Facebook etc. I think Netflix has severely miscalculated itself, and this may be the end.

Re: Netflix Splits DVD And Streaming Businesses

#25
post #7

In my opinion, this is definitely the obvious and correct move. It isn't a surprise that Netflix wanted to head towards a stream only business model, but this makes it crystal clear that Netflix is (at the moment) a premium streaming video company. I mean look at them, thats all they do now! The still face some big hurdles with all their streaming content deals, and the outcome will likely be what makes or breaks the…

"this makes it crystal clear that Netflix is a premium streaming video company. I mean look at them, thats all they do now!"

Yeah, well...now they're providing a commodity service. Renting DVDs through the mail has/had a huge infrastructure advantage for the established player. Streaming video over the internet? There are dozens of sites that do it well. The technical advantage is far less sustainable, because it isn't nearly as difficult.

Once you're running a streaming-video business, the only differentiating advantage is content -- and you're in a weak position to negotiate for that content. Whereas before, the studios needed Netflix to distribute their content to consumers, the internet has turned the tables.

Re: Netflix Splits DVD And Streaming Businesses

#26
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…

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Re: Netflix Splits DVD And Streaming Businesses

#27

I read this and my brain immediately thought it had to be an April Fools joke. It took a second or two to remember it is September. Regardless, my hat is off to them for betting the company's name on their streaming business. I know that's the only part of their service I use anymore -- I've had the same DVD checked out for over a year because I couldn't be bothered to deal with the perceived hassle of managing my qu…

me as well. i thought: this can't possibly be real its so user hostile.

Re: Netflix Splits DVD And Streaming Businesses

#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 sustain them (let alone power growth), they do seem to have a pretty good sense of how people engage with their content - and my guess is that their deep long-tail of streaming content actually holds more appeal than might be guessed. To be honest, my only frustration with them of late has been the fact that my streaming queue is overrun with "Bob the Builder" & "Caillou" when I'm actually looking for something to watch. Perhaps this new, sharper focus on the streaming side will enable them to improve things like this? Here's hoping they survive this transformation and emerge stronger for it.
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