Netflix hikes prices for DVDs + streaming

[dickey1331]

Re: Netflix hikes prices for DVDs + streaming

This whole 2 website thing is stupid. They seemed to have messed it up more. 2 separate bills instead of one. 2 websites. Whats the point in keeping both services and I think the new name is dumb. This makes me want to cancel my service more than the price change.

[st67]

Re: Netflix hikes prices for DVDs + streaming

It was a good run - nothing lasts forever. I enjoyed it while it was worth having (to me), and I saw some movies I'd never see. Now I'll stick with what ends up being on HBO, Showtime, Starz, etc.

[CMH]

Re: Netflix hikes prices for DVDs + streaming

Netflix is having an identity crisis. They are taking a huge leap of faith here by basically restructuring their focus when there is little sign it'll be successful.

Then again, Netflix was challenged when they offered DVDs by mail. People said it couldn't be successful. No one will wait for a movie to arrive in the mail. People want their media now. We have Blockbuster and Hollywood video.

Netflix changed the way people think by offering a far greater selection than the others, no late fees and lower prices than the in-store competitors.

Now Netflix is saying that is done. No one wants to wait for their DVDs; people want to stream their content. Maybe they are right, and people will doubt they are making the right move, but perhaps Netflix is jumping ahead of everyone else and seeing something no one else is seeing: Streaming is the future of content.

So, their resolution is to separate the Netflix name from a "failing" content provider: DVDs by mail. If DVDs by mail fail, Netflix does not; instead Qwikster does.

Netflix, on the other hand, will be heralded for its brilliance in realizing a change in consumer wants and dominating the market ahead of any new competition.

And if they are wrong...

edit: What I don't understand is why doesn't Netflix with their new Qwikster name attack Redbox and offer $1 DVDs in a Qwikster kiosk?

Maybe that is what they are planning to do eventually? I just don't understand why change the name if that is the plan. Netflix is immensely popular. I fear this is going to become the 21st century version of Coca Cola changing the formula.

edit2: Having said that, Coca Cola is still the largest soft-drink producer. So, probably not the best analogy.

[Fresh Tendrils]

Re: Netflix hikes prices for DVDs + streaming

It makes sense what they want to do and they've made it obvious to everyone that they're done with the DVD service. What doesn't make sense is how botched up the delivery of information has been over the past 2 months.

Qwiskter was obviously in the plans, but why didn't they just announce that when they separated the dvd and streaming plans? What was the point of shooting themselves in the foot twice when they could have done it once? I don't understand how they think this announcement is going to stem the tide of their negative reception over the past month or so. Streaming is obviously the "future" and Netflix apparently believes in that 120%, but they've done a horrible job of selling it and have simply come across and aloof and shady.

Not to mention the non-integration is ridiculous.

[CMH]

Re: Netflix hikes prices for DVDs + streaming

It makes sense what they want to do and they've made it obvious to everyone that they're done with the DVD service. What doesn't make sense is how botched up the delivery of information has been over the past 2 months.

Qwiskter was obviously in the plans, but why didn't they just announce that when they separated the dvd and streaming plans? What was the point of shooting themselves in the foot twice when they could have done it once? I don't understand how they think this announcement is going to stem the tide of their negative reception over the past month or so. Streaming is obviously the "future" and Netflix apparently believes in that 120%, but they've done a horrible job of selling it and have simply come across and aloof and shady.

Not to mention the non-integration is ridiculous.

Definitely agree with this.

Should have announced this first or concurrently since people would have instantly asked: "Will the price be the same?"

Netflix could have saved some face by saying something like: "We are no longer offering DVDs by mail through the Netflix name or website effective September 1st. Insert reasons why, their focus, blah blah blah."

Then go into how the company is launching a new brand called Qwikster that will provide the DVD by mail content Netflix has long provided to its dedicated customers. Insert how the content will be the same, the service will still be quick, nothing is changing but the name."

And finally reveal that because of this shift, the DVD by mail and Instant Watch programs will be billed separately. Insert how customers with steaming and DVD by mail will still receive both services unless they choose to opt out at separate charges of $7.99, talk about opt out options, downgrade options, upgrade options. Give the customer choices.

Would that have made things better for everyone? No. Of course not. But, something like that would have at least given the customers a better understanding of Netflix's goal and (oh my gosh! the magic word in 3...2...1...) options. No confusion, no wait, what's going on? Just here are the details, this is what we're doing, these are your options.

Probably would have still lost one million customers, but at least the other 20 million wouldn't feel confused.

[DaveDQ]

Re: Netflix hikes prices for DVDs + streaming

I'm not going to take the email as it being all so sincere, but it's interesting that he mentioned AOL in the email. AOL, once a thriving company as an internet provider, was not able to change with the times. There was little to now innovation, and no they are irrelevant.

That's the challenge for Netflix. The emphasis here is they give the streaming service the more developed brand name of Netflix and give their decreasing DVD service a new branding. But the challenge to stay relevant will be met/not met by the ability/inability of having big hollywood movies attached to their service. But they are making the right decision in looking at streaming for the future. It works great now and when you look at how fast it has grown in recent years, technology and demand will push it even further along.

[AUChase]

Re: Netflix hikes prices for DVDs + streaming

I got that same email. I would have preferred them not send me anything at all, rather then send me that garbage.

[Mabster]

Re: Netflix hikes prices for DVDs + streaming

Oh Netflix, you didn't think to grab the @qwikster twitter account before making this change?

http://techcrunch.com/2011/09/18/uh-oh-qwikster-already-has-a-lively-twitter-account-but-its-not-owned-by-netflix/

[Chef Matt]

Re: Netflix hikes prices for DVDs + streaming

Oh Netflix, you didn't think to grab the @qwikster twitter account before making this change?

http://techcrunch.com/2011/09/18/uh-...ed-by-netflix/

Haha I saw that too. I think that dude's had that twitter account for a few months though.

[CMH]

Re: Netflix hikes prices for DVDs + streaming

Two things:

1. The jokes by people are good. Will be tiring after a bit, but good jump on this. Cheech and Chong. Love it.

2. I bet that guy has no idea what's going on.

[ScoobySnax]

Re: Netflix hikes prices for DVDs + streaming

That had to be one of the dumbest e-mails I've read in a while. The intro flat out sucked lol.

"I messed up. I owe you an explanation."

[cjonesfan921]

Re: Netflix hikes prices for DVDs + streaming

Stock dropped close to 10% again. In exactly 365 days, NFLX has dropped from a high of $304.79 to a price of around $143 right now. They have lost more than half their value! Also, it was up towards $300 in early June IIRC.

[luv_mist]

I think I'll keep the streaming and see if there is a Blockbuster around me. It might work out better for me that way. Though Redbox looks good, it's a bit more expensive for me. If I decided I wanted to watch a series not on Netflix, it would make more sense to have something with unlimited rentals for a set price. We shall see how that goes. So the ratings and things won't translate which is a bummer. I'm being torn.......


Sent from here to there

[mgoblue]

Re: Netflix hikes prices for DVDs + streaming

My mom just e-mailed me and is canceling, and I think I may drop the streaming for now (the quality of stuff has been kinda meh, plus they're losing Starz soon)...

Netflix really has to bring it in order to make it worthwhile now.

[DaveDQ]

Re: Netflix hikes prices for DVDs + streaming

It's almost like they want DVDs to just go away so they botched this whole thing. We talk about how Blockbuster got stagnant and Netflix came in and stole the show, but now they are choking big time with how this whole scenario is playing out.