Netflix Splits DVD And Streaming Businesses

#1

Post by ssclafani » Mon, Sep 19, 2011, 4:16 AM UTC

Netflix Splits DVD And Streaming Businesses
techcrunch.com

Re: Netflix Splits DVD And Streaming Businesses

#2

Post by whichdan » Mon, Sep 19, 2011, 4:26 AM UTC

I wonder what Netflix will show for search results that are only available on Qwikster.

Re: Netflix Splits DVD And Streaming Businesses

#3

Post by aaronbrethorst » Mon, Sep 19, 2011, 4:28 AM UTC

This decision was not made over night, and this change has been coming for quite a while. In fact, if you go look at this post on Netflix's API blog dated 27 June 2011[1], you'll see:

As of Oct. 14th, 2011, the Netflix API will be focused exclusively on offering content and functionality from the streaming catalog. As a result, we will be discontinuing the support of DVD-related features in the Open API.

They go on to say that this is to support long term goals around internationalization, but that does not, by any means, preclude this split.

[1] http://developer.netflix.com/blog/read/Upcoming_Changes_to_t...

Re: Netflix Splits DVD And Streaming Businesses

#4

Post by ByteMuse » Mon, Sep 19, 2011, 4:31 AM UTC

This seems like an act of desperation.

Re: Netflix Splits DVD And Streaming Businesses

#5

Post by hesdeadjim » Mon, Sep 19, 2011, 4:32 AM UTC

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 queue and planning what I want to watch in advance.

Re: Netflix Splits DVD And Streaming Businesses

#6

Post by ethank » Mon, Sep 19, 2011, 4:33 AM UTC

aaronbrethorst wrote: post #3

This decision was not made over night, and this change has been coming for quite a while. In fact, if you go look at this post on Netflix's API blog dated 27 June 2011[1], you'll see: As of Oct. 14th, 2011, the Netflix API will be focused exclusively on offering content and functionality from the streaming catalog. As a result, we will be discontinuing the support of DVD-related features in the Open API. They go on t…

Qwikster.com was registered in May 2010. This was not an overnight decision and I doubt even the contrition in the blog post wasn't well planned.

Re: Netflix Splits DVD And Streaming Businesses

#7

Post by bryanh » Mon, Sep 19, 2011, 4:35 AM UTC

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 Netflix we all know and love. Premium content providers (HBO, Starz, and now AMC, etc...) will always hold the upper hand here, and many already have streaming products in place. If not, its rather trivial to create nowadays.

My prediction: Netflix becomes an original content powerhouse that harnesses the sort of democratic whimsey of the web. "House of Cards" is their toe in the water. I really see no other direction that is feasible with content providers fragmenting into their space and hoarding their popular original content.

Re: Netflix Splits DVD And Streaming Businesses

#8

Post by Lukeas14 » Mon, Sep 19, 2011, 4:37 AM UTC

The elephant in the streaming office is the lack of blockbuster titles, many of which are only available through their DVD by mail business. If they're betting everything on streaming i'm guessing (hoping) that they've also figured out a solution to this problem. Otherwise, they've lost the big benefit of credibility that DVD by mail brought to their service.

Re: Netflix Splits DVD And Streaming Businesses

#9

Post by eternalmatt » Mon, Sep 19, 2011, 4:44 AM UTC

What an absolutely awful name "Qwikster". I'm still frowning in disgust.

Re: Netflix Splits DVD And Streaming Businesses

#10

Post by waterlesscloud » Mon, Sep 19, 2011, 4:45 AM UTC

ethank wrote: post #6

aaronbrethorst wrote: post #3

This decision was not made over night, and this change has been coming for quite a while. In fact, if you go look at this post on Netflix's API blog dated 27 June 2011[1], you'll see: As of Oct. 14th, 2011, the Netflix API will be focused exclusively on offering content and functionality from the streaming catalog. As a result, we will be discontinuing the support of DVD-related features in the Open API. They go on t…

Qwikster.com was registered in May 2010. This was not an overnight decision and I doubt even the contrition in the blog post wasn't well planned.

I strongly suspect it's related to negotiating royalties for streaming based on streaming subscriber numbers, not the combined numbers.

That was the reason behind the original split in the services, so it's probably why they're actually splitting the accounts.