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Netflix Abandons Plan to Split DVD and Streaming Services

Posted Oct 10, 2011 at 2:00PM EST by

Listed in: News Tags: Netflix, qwikster, reed hastings
Ó

Less than a month ago, Netflix announced that it would be splitting its DVD and streaming services into two separate companies. Netflix would handle the online streaming part of the business, and a new entity known as Qwikster would handle DVDs. As you can imagine, Netflix customers reacted forcefully against the change, upset that they’d need to manage two queues, two ratings systems, and two bills to get the same service they had already been getting for the last few years.

 

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Netflix at first seemed determined to push on with the change, but in light of an enormous amount of customer feedback and a sudden drop in stock value, has now elected to give up on the plan. Netflix CEO Reed Hastings issued this statement this morning:


“It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs. This means no change: one website, one account, one password… in other words, no Qwikster.”


It’s admirable that Netflix was able to recognize its mistake and fix it before it cost them a mountain of customers, but one also has to wonder what genius at the company actually thought people would enjoy having their services split into two separate entities. Right now, when I want to watch a specific movie, I search for it on Netflix streaming. If it’s not available, I add it to my DVD queue. With the new system, I would have to log into another website, re-search the title and add it to a completely separate queue – not really the epitome of convenience.


Whatever the original motivation, it’s nice to see that we won’t be needing a Qwikster account any time soon. This has to be one of the most ill advised moves made by a company in recent memory and Netflix made a good decision by reversing the call before they injured themselves for the long term. In the meantime, the previously announced game rental feature is now left in limbo, with the service saying game rentals are “to be determined.”


What do you think of the Netflix/Qwikster debacle?


Via GameTrailers

 



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Comments 


 
# Just A PloyLeaveMeAlone 2011-10-10 16:30
The split was just a diversionary tactic to get people focussing on something other than the price increase. If you think about it we are now paying at least 17 dollars for what we were paying 10 dollars for and nothing changed. Netflix just became master quick change artists.

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# RE: Netflix Abandons Plan to Split DVD and Streaming ServicesDJ PON-3 2011-10-10 16:33
Greedy bastards

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+1 # RE: Netflix Abandons Plan to Split DVD and Streaming ServicesMikeFoster 2011-10-10 16:57
They really screwed up, but at least they're backing off.

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# RE: RE: Netflix Abandons Plan to Split DVD and Streaming ServicesBut Fukir 2011-10-10 23:25
I wouldn't get your hopes up that they're backing off.

They're gonna tone it down, but they're still going to gradually phase out the DVD's and try to force streaming on everyone because they need more money to get programming rights, plus streaming is lower overhead for them since there is no physical product, no multiple wherehouses and no shipping to cover.

They're not backing down so much as feinting left after catching a right cross.

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# RE: Netflix Abandons Plan to Split DVD and Streaming ServicesBut Fukir 2011-10-10 17:11
Still gonna cancel though.

I dont need anything that they're streaming.
There's more selection and its easier to wrangle and watch the files for me just DLing P2P.

(Although I can see how streaming is easier and safer for grandmas and grandpas. Streaming is the AOL of videos on the internet.)

The best part about netflix IMO was the DVD/Blueray rental so that you could watch uncompressed video and all of the extras.

But they've been stripping out their DVD selection to try and force people to switch over to streaming.
A bunch of stuff that they HAD and was in my DVD cue is suddenly not available now.

Business as usual, its the murikan way.

As soon as something gets popular, netflix, ebay, paypal, google/youtube, ms, apple, cod, etc, they take advantage and milk it up to the edge of justification.

Somebody just needs to clone those things and offer alternatives that do a few things better or cheaper.

Like the Chinese.

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# RE: RE: Netflix Abandons Plan to Split DVD and Streaming ServicesBut Fukir 2011-10-10 17:14
BTW: is that picture ^^ greed hasting doing his "I'm Rick James bitch!" impression?

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# RE: Netflix Abandons Plan to Split DVD and Streaming Servicesfiredragon_jing 2011-10-10 21:56
I wanted the service to split so Netflix could focus more on streaming and get us better content. I feel the DVDs are only holding the service back.

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# RE: Netflix Abandons Plan to Split DVD and Streaming ServicesBut Fukir 2011-10-10 23:17
Better content like what?

You know how much its gonna cost for netflix to get the rights to broadcast new movies anytime near release or any popular TV shows?

The rights for them to get old NBC shows already just went from 25 mil to 300 last year.

Thats why they're trying to charge more for giving you less right now.

You could just pay your cable bill for the price they'll have to ask if thats what your after.

But I hope they do also.

So that somebody else, maybe blockbuster can step in and do a better job with the DVD's while netflix extorts somebody else.

Reply
 

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