Netflix to split DVD business? Not any more!

[rockymtnhigh]

Lifehacker is reporting this morning that Netflix has made a major change in its business practices.

Netflix Splits Streaming and DVD Businesses, Creates Separate Sites for Each

In an overnight email to subscribers and blog post, Netflix announced that it would spin off its rental DVD-by-mail business into a new business called Qwikster, while Netflix would remain streaming-only. The two businesses will be separate, the two sites will be separate, and the bottom line is that DVD subscribers will have to visit another site to manage their queues and pay their bills.

Netflix itself will continue to offer and handle streaming video on all of the currently-supported platforms, so subscribers will notice little to no change there. How DVD subscribers will be migrated to the new Qwikster remains to be seen. Some details are clear however: Qwikster will be completely separate from Netflix, meaning personal and payment information, DVD and series ratings, and your queue, will be entirely separate. If you look up an item via Netflix streaming and find it's unavailable, you'll have to log in to Qwikster to search for it there, add it to your queue there, and have it shipped to you. Qwikster will also offer video game rentals in addition to DVDs and Blu-ray discs.

 

[jgags6]

They also said that they would be offering Video Game rentals on Quikster also.

 

[rockymtnhigh]

Here is the official explanation from Netflix' blog

http://blog.netflix.com/2011/09/explanation-and-some-reflections.html

 

[Rangers484]

Poor decisions compounded by poor execution. No integration of the DVD and streaming sites, separate billing....loss of up to 1 million subscribers since the price hike already.

 

[cybok0]

I think I might just change to the streaming service, I can get movies and games from Redbox.

 

[Ronnie-]

I think I might just change to the streaming service, I can get movies and games from Redbox.

I would but, there are shows that the wife watches, that are not available on streaming, and also not available with redbox. Renting per episode with another service would be even more costly. If I cut it out, I am cutting it all out.

 

[cybok0]

I would but, there are shows that the wife watches, that are not available on streaming, and also not available with redbox. Renting per episode with another service would be even more costly. If I cut it out, I am cutting it all out.

I'm hoping with this move the streaming service will get better with TV shows because I hate watching shows on disc. I only get two movies at a time and when I got the Dexter series I got the first two discs but I had to wait for the third. When I streamed Lost I watched a season in like three days but that was when I was on nights and had more time for that stuff.

 

[RandallA]

Got my email this morning with the explanation. Streaming never worked for me, I could never find anything I wanted to watch. If they update their library, maybe I'll switch to Netflix.

 

[Anonymous99]

I get the feeling that Netflix knows something about Echostar's announcement about Blockbuster on Friday that we don't know...

 

[isaacmorseMI]

Qwikster? Really Netflix? Really?

Sent from my iPad 2 using the SatelliteGuys App

 

[Juan]

Got my email this morning with the explanation. Streaming never worked for me, I could never find anything I wanted to watch. If they update their library, maybe I'll switch to Netflix.

if u like starttrek.(all shows).......... netflix is for u..they change the library every month or so..what u see now may not be around next month

 

[ncted]

Dumb and Dumberererer. Let's all sit back and watch a company implode. Dish/Blockbuster: I hope you are paying attention. Here is your opportunity.

 

[Scott Greczkowski]

1PM ET on Friday can't come fast enough.

I have a feeling DISH is going to make a Blockbuster Announcement which can really hurt Netflix.

 

[king3pj]

I cut my 2 Bluray at a time plan today and kept streaming only. I signed back up for Blockbuster's 2 Bluray/video game at a time plan which I have used before. I actually liked Blockbuster's mail service better because it gets new releases day 1, video games are free, and I love being able to exchange movies in the store at no charge when I want to do an impulse rental.

The price is exactly the same as if I kept my 2 disk plan with Netflix and my unlimited streaming with Netflix. The reason I canceled Blockbuster in the past and went back to Netflix for my disks was the integration. I didn't like having 2 queues on 2 different websites. I didn't like renting a disk if Netflix had it streaming and it was a hassle to figure it all out on two websites.

This change took away the only reason to use Netflix for disks for me. If Blockbuster had a similar streaming service to the one Netflix offers I would drop them completely and get my integration back.

 

[satjay]

1PM ET on Friday can't come fast enough.

I have a feeling DISH is going to make a Blockbuster Announcement which can really hurt Netflix.

I was thinking that netflix was doing this to preapre for the DISH announcement myself?

 

[SamCarp]

Got my e mail also. Dropped Blockbuster for the exact same reasons. I can barely keep one website with two queues on it straight...... Am still on the $19.99 per month billing for a little longer. If Blockbuster/Disn get it right, I am back with them in a heartbeat.

 

[dangue]

I don't mind the split from a business perspective, but this should be as minimally inconvenient to consumers as possible. I shouldn't have to manage two separate queues or have to rate offerings in two locations.

If something is available to stream, then I'd probably go that route instead of waiting for the disc. Right now, that's easy to determine. In the future that will involve a whole lot more effort because I'll have to check on streaming availability in one place and then go elsewhere to potentially request the disc be shipped (if streaming is a no go).

These services can be separated, but still integrated enough to avoid such complications. Stupid stupid stupid!

Also, in the past, multiple disc service on the mailing side allowed for multiple streams at once on the streaming side of things. How will this severance impact that?

 

[whitewolf8214]

Netflix C.E.O. Apologizes for Handling of Price Increase
Netflix C.E.O. Apologizes for Handling of Price Increase - Yahoo! Finance

 

[whitewolf8214]

1PM ET on Friday can't come fast enough.

I have a feeling DISH is going to make a Blockbuster Announcement which can really hurt Netflix.

+1 Agree Scott but I hope its a good announcement and not a snoozefest

 

[long_time_DNC]

I agree, it's a dumb move and a stupid name...Qwikster? Give me a break...