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Netflix Splits DVD And Streaming Business

TekGoblin:

Netflix has just dropped a huge bombshell on the world. Netflix CEO Reed Hastings says that they are going to separate their DVD and Streaming services into two separate business units. The DVD service will now be called Qwikster and will continue to operate the same way Netflix did DVD’s before.

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gaffyh1907d ago

I actually think this is a good idea, even though many users don't. They need to differentiate it.

Sarick1907d ago (Edited 1907d ago )

So, when my DVD's go into the streaming I won't see them added to streaming instead I'll be getting a DVD. I disagree, I like my online and offline together in a PACKAGED deal. All this will do is make me realize how pathetic the streaming really service is come February.

Seriously, Netflix is making bad choice after bad choice. This CEO went from making all the right choices to making all the wrong ones in a single year. We got everyone hooked lets reel them in they can't escape. (sigh)

I was told once by in religious environment. "A preachers success is measured by how many fruit they have on their tree" In this case fruit are the subscribers and a lot are falling off.

If Netflix is losing millions of subscribers they're doing something WRONG. It's my guess he's breaking it off so he can get better deals with movie labels etc. In reality they're crippling what made the busyness a success. More quality and cost cutting tactics to legitimize destroying what made the service so successful.

Kurylo3d1907d ago

u know i can care less about the price hike.. it really wasnt all that much in my opinion and i would pay quadroople the price. But my problem is first starz slips through their fingers. Now this nonsense... make me feel very uncomfortable with the service. Quite frankly im glad that its only 7 dollars to stream, but it will basically only be for the anime and tv shows at this point... i hope they find ways to bring in more quality cinema.

gaffyh1907d ago

But you can still get both deals, it just means they will be charged to you separately. The idea behind this move is to attract people to certain aspects of the business, because some people who only want streaming will pay for Netflix, and others can pay for Qwikster, which is now going to offer more services including video game renting.

I don't really see the problem, because it makes sense from a consumer stand point and a business standpoint. If you only want movies, pay for streaming, but if you want games and DVDs/Blurays, pay for them.

Bull5hifT1907d ago

DJ Quik is gonna Sue Sombody

Cat1907d ago

I thought it was obvious this was the direction they're headed - or that their intentions had already been made known (I don't fancy myself an industry psychic ;) ).

Kinda think the streaming service is sort of where iTunes was back in its early early days, and I'm optimistic things will get sorted out. Folks keep pulling shows off streaming b/c they want a piece of that pie for themselves, but they'll discover that a million different tiny pie slices doesn't go over as well as making their content available through a widely used, central service. /ramble

snoop_dizzle1907d ago

A lot of this unfortunately is due to traditional media companies (and ISPs) running with an antiquated business model. Until they realize that they have just as much potential, if not more potential via streaming (especially conceptually speaking, when you think about the ability to stream Netflix over a ton of devices), we will have these issues. A lot of people threw hate toward Netflix, when the real issue is the content providers (although a lot of people just hate something on price, unfortunately Not what the service is actually worth). I can understand dislike over it, though. I moved to the streaming only plan too. But Netflix is a company and they have to make money as well. They can't necessarily take the kind of loss people seem to want them to take.

But yeah, separating the physical and virtual business might be in everyone's best interest, as they can tweak pricing more. I have a feeling a monthly subscription prices will go down, and if they add a gaming subscription plan or a combo plan, it might end up being pretty good.

snoop_dizzle1907d ago

The one thing that seemed to get out shadowed by all this news is the potential video game subscription service with Quickster. I am pretty interested in this, as this would give Gamefly some good competition, and hopefully some competitive pricing. Not to say I am unhappy with Gamefly. In fact more recently they have been pretty good. But if they compete, we might see some pretty good things come out of it.

As it is, Quickster will likely have to restructure their monthly fees (and they might even be able to do so in a good way) since it is entirely disk based. The only thing is what will happen to the integration between the services since they are separate. At the same time, I'm sure that will be solved.

PooEgg1907d ago

You are right, the video game addition is being overshadowed by the qwikster (horrible name, really)announcement, and meanwhile their stock keeps dropping and customers keep canceling. If anything the e-mail people are getting has done nothing but piss people off all over again. It has served as a reminder that they are now officially paying more for Netflix, and it is time to cancel.

_Q_1907d ago

On that final note. Netflix has a better deal with the USPS than that of gamefly. Gamefly could not get the same deal Netflix(qwikster)had because they didnt move as many envelopes.
And a solid UNIFIED physical media service does have potential. People tend to like services and goods as close to all in one as they can get if the money makes sense. I could see this working better than folks think.