Netflix splitting into two entities

[Smokey]

After losing a million customers and a major portion of its stock value due to price hike, Netflix has decided that it’s time to go in a new direction. Netflix CEO Reed Hastings said in his blog that in few a weeks Netflix will be splitt into two separate entities.

The two new entities will be named Netflix and Qwikster. Netflix will now refer solely to the company’s video streaming service, and Qwikster will refer to DVD mail order which also offer video games as part of an “upgrade option”.

The Qwikster and Netflix sites won’t be integrated and users will have to sign up for two separate subscriptions. Qwikster will cost $7.99 a month for one DVD, and streaming will still cost an additional $7.99 a month.

Netflix CEO Issues Apology, Renames DVD Business | Adweek (http://www.adweek.com/news/technology/netflix-dvd-service-renamed-qwikster-same-pricing-134946)

[kevlarus]

The two new entities will be named Netflix and Qwikster. Netflix will now refer solely to the company’s video streaming service, and Qwikster will refer to DVD mail order which also offer video games as part of an “upgrade option”.

The Qwikster and Netflix sites won’t be integrated and users will have to sign up for two separate subscriptions. Qwikster will cost $7.99 a month for one DVD, and streaming will still cost an additional $7.99 a month.



Yup, and it's brilliant. Well, not for customers but doesn't this 'solve' the issue they were having with the studios regarding the size of their customer base during contract renewals ?

That's why it's a different name, totally different web site nothing common (per se).

[Smokey]

Yup, and it's brilliant. Well, not for customers but doesn't this 'solve' the issue they were having with the studios regarding the size of their customer base during contract renewals ?

I never thought of it that way. If it is , then as you said it is a brilliant move. On the other hand, Qwikster $7.99 a month for one DVD rental might not fly too much. With hard disc prices falling (even for bluray), might be better off buying the disc rather than rent.

[E-Stat]

On the other hand, Qwikster $7.99 a month for one DVD rental might not fly too much.
Not exactly. That's $7.99 per month for having one disk at a time. Total turnaround time for me is about a week, so if you don't sit on them you can get about four disks in a month's worth of time.

rw

[Smokey]

If your turn around is a week, that might not be bad deal. I tend to be s a sitter as watch movies in segments and couple of times over a week, so buying movies probably make more sense to me. Beside I have BigLots store nearby by that sell older titles DVDs for $3 and newer titles for $5. And I get to keep them :D

Do you have subscribtion to both streaming and DVD rental, or just one service?

[E-Stat]

Do you have subscribtion to both streaming and DVD rental, or just one service?
Apparently both. Our automatic AMEX charge did go up a bit this month.

rw

[Smokey]

Well, this the way subscribtion look right now. Lets see how 12 million that have subscription to both DVD and sttreaming will look six month down the road with launch of Qwikster. My guess would be that DVD subscription will drop as some memebrs might decide to down grade since they are given the option.

http://www.blogcdn.com/www.engadget.com/media/2011/07/netflixsubscriberstats.jpg

[djpnutz]

guess they cant compete with red box

[ChiefGopher]

I think this is a smart move on their behalf. Personally I only use their streaming service and I love it.

[StevenSurprenant]

Netflix Rewinds DVD Plan
Netflix Abandons Qwikster Plans - WSJ.com (http://online.wsj.com/article/SB10001424052970203499704576622674082410578.html)


The Internet movie-rental company said it was abandoning a plan to split its DVD-by-mail service into a separate business named Qwikster, originally hatched so it could focus on its online video-streaming service. Customers had howled about that plan, which promised to heap inconvenience on top of a previously announced 60% price increase. Between the two moves, subscribers were livid, and a customer exodus was driving down Netflix shares.

Read more: Netflix Abandons Qwikster Plans - WSJ.com (http://online.wsj.com/article/SB10001424052970203499704576622674082410578.html#i xzz1bnTiR3bQ)

[Hyfi]

Stock down 25% also

Netflix down 25% as subscribers drop - FT.com (http://www.ft.com/cms/s/2/ca1f9798-fe19-11e0-bac4-00144feabdc0.html#axzz1bnXDvtV6)