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Netflix splitting DVD rental and streaming services

Risasi said:
What I'm saying is I think they should tier it all. Netlflix, just make those deals happen with HBO, Stars, etc. I'll still pay the $8-$20 for unlimited insta-watch of older A-list/mediocre content, and bill me when I want to rent Rio or Thor or Transformers 3 just out on DVD.
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I could see that -- I think if Netflix offered a base plan that had unlimited viewing of some content and charged for rentals on new stuff, they would offer a really compelling service. Their streaming technology works better than Hulu and the others -- if they offered the same service Hulu offered at the same price, it would automatically be more appealing to me....
 
There are only two reasons NFLX would split the streaming and DVD businesses like this.

1) Netflix management can't figure out how to compartmentalize two seperate cost structures for two distinct businesses within the same company. Under this scenario NFLX management would probably need help putting on their shoes in the morning, as they would be idiots.

2) NFLX is looking to sell the DVD business.

As Reed Hastings isn't an idiot and NFLX management shows some wherewithall I'm going with number two. Within 3-5 years, Qwikster gets sold to some guy who's content with sucking the marrow out of the physical media business for another 15 or 20 years until it becomes unsustainable*.

*I don't think it will, but that's an entirely different discussion.
 
mkrishnan said:
I could see that -- I think if Netflix offered a base plan that had unlimited viewing of some content and charged for rentals on new stuff, they would offer a really compelling service. Their streaming technology works better than Hulu and the others -- if they offered the same service Hulu offered at the same price, it would automatically be more appealing to me....
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My thought they had a compelling product before they ruined it... :)
 
Right, I just saw that too on Reuters. Wow, these guys at Netflix are running a good brand into the dust trying to make a move that will impress their shareholders. Forgetting that to have a share price you need to have customers.

Netflix drops unpopular Qwikster DVD plan:

http://www.reuters.com/article/2011/10/10/us-netflix-dvd-idUSTRE7992EB20111010

Really, why don't they get some customers in for a chat before they make their next brilliant move. If there are any customers left.
 
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My goodness this company has lost it's mind!!! Doesn't a big company like this actually think HUGE changes like this through before they announce them? I bet the stock tumbles even more because of a lack in leadership ability.
 
winston1236 said:
they only stream garbage anyway
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Is right, I'm in australia so i don't get access to the DVD side of things, however any tv show and movie i wanted to watch, were only available on DVD. there wasn't a lot to choose from (for what i was interested in anyway).
 
stevensr123 said:
Is right, I'm in Australia so i don't get access to the DVD side of things, however any TV show and movie i wanted to watch, were only available on DVD. there wasn't a lot to choose from (for what i was interested in anyway).
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This is not unique. They have to package the dross in some way, to turn a profit.

"Just Say No!!" ;)
 
Doctor Q said:
Netflix's CEO said yesterday that they've canceled their plans to offer videogame rentals. That seems to be the last ghost of their spin-off plan.
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That was the most bizarre part of their 'plan'. If the market was really worth pursuing, then why not just buy Gamefly?
 
i will give netflix credit for realizing that they were making a bunch of stupid mistakes and then going ahead and adjusting those ideas when their customers reacted. shame that video game rentals won't happen but i'm not surprised either. given how many restrictions there are put on games these days i'm shocked that a used/rental market is possible still.
 
I was sort of excited for the game rentals too. I have GameFly and love it but the only thing I hate about it is the amount of time it takes for the send and return of games. They are by no means fast shipping like Netflix. But then again they don't have near as many distribution centers as netflix.
 
Doctor Q said:
The damage Netflix did to its image wasn't permanent.
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I think once their CEO finally closed his mouth and stopped saying anything people started to forget about him

I kept the service, both streaming and DVD
I did cut the DVDs from 3 to 2 to offset costs

But RedBox is becoming far more convenient for those moments you want to see a movie
The Netflix streaming catalog is weak, and even though the DVDs arrive quick, it isn't as quick as the RedBox around the corner
 
I still use Netflix but only one disc by mail at a time--and have no problems with their service. I buy some blu rays and the rest of the movies I watch I get via iTunes--or Amazon. I use Amazon Prime free streaming too. There are enough choices now that you don't have to be limited to one service to fit your needs.
 
The PR damage might not have been permanent, but their stock price dropped about 70% last summer and hasn't moved since. With the streaming wars really just starting to heat up I don't think Netflix will ever get back to where it was before.


Lethal
 
I bailed on Netflix. It started taking me so long to find something to watch. Before I cancelled I was watching the most garbage acting I've seen because I couldn't find anything.

Have they improved their selection in the past few months?
 
Netflix price hike coming

People were outraged last time about their 60% price increase. This time Netflix is being vague, saying it will be a "dollar or two" more. But a $2 increase for an $8/month service in the U.S. is still a hefty increase of 25%.
 
Doctor Q said:
Netflix price hike coming

People were outraged last time about their 60% price increase. This time Netflix is being vague, saying it will be a "dollar or two" more. But a $2 increase for an $8/month service in the U.S. is still a hefty increase of 25%.
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Kind of makes sense. They have to pay for content and they also have to pay to make sure their subscribers can actually access their content at a reasonable speed.
 
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