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Netflix Abandons Plan to Spin Off DVD Rental into New 'Qwikster' & Add Video Game Rental

submitted on September 19, 2011 by HouTex in "Stores / Merchants", last updated on October 11, 2011 by HouTex
UPDATE: After 3 weeks, Netflix has abandoned their plan to split the company and issued another apology - http://money.cnn.com/2011/10/1...../index.htm

What gave them a clue? Maybe the droves of customers abandoning them....




After customer outrage and falling stock prices, Netflix announced that their DVD business will be rebranded as Qwikster, while the streaming movie service will retain the Netflix name. They will also add a video games upgrade option, for those who want to rent Wii, PS3 and Xbox 360 games.

The price and plan changes will remain the same, and a separate Qwikster site will be launched in a few weeks, but it will not be integrated with the Netflix site.

The CEO apologized to customers for a lack of communication in a blog post 9/18/11 - http://blog.netflix.com/2011/0.....tions.html

It starts with an admission to customers: “I messed up.” He's still not saying that the price hike was a mistake, only that he should have explained it better.

We realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster”.

We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.


Their YouTube apology is here - http://www.youtube.com/watch?f.....n8n5CIPk#!
1. What effect do you think this move will have on Netflix customers?
 Bring them back
 Make them madder
 Indifferent - by now they don't care
 or See Results 

        

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  Comments
  • 125383
    MattR336
    learner
    Posted by MattR336 on September 19, 2011 [reply] 0 0
    I was hit or the first time at the beginning of this month with the new price. I was a bit upset but I get 1 blu ray and endless streaming for less than $20. I still thinks it's a great deal but now they are really messing up splitting the businesses. Just like everyone else, making millions isn't enough.
  • 125388
    orangearrows
    professor
    2 3
    7 1 1
    Posted by orangearrows on September 19, 2011 [reply] 0 0
    I don't think people are going to like this at all + the name is so shitty. Sounds like stolen from Flixster ....but what's with them adding a Qw? What relevance does it have to movies. Flixster ..Friendster ...names had relevance in the first half of the name. Qwik-ster.
  • 125430
    lootango
    professor
    11 9 1
    Posted by lootango on September 19, 2011 [reply] 0 0
    They don't even have good options for streaming. They hiked up their prices and lost a pretty big fan base. If they can't improve their movie library online, pretty soon there may be no more Netflix (which is fine since they're already dead to me).
  • 125436
    orangearrows
    professor
    2 3
    7 1 1
    Posted by orangearrows on September 19, 2011
    [reply] 1 0
    I think this was a deliberate move by the CEO to sabotage the stocks ( for sometime )so that they can make money both ways. This is going to be investigated for sure.
  • 125542
    BeckaKnows
    beginner
    Posted by BeckaKnows on September 20, 2011
    [reply] 2 0
    I don't think this is so bad. I think they were ultimately going this way regardless, and I'm sure it'll be fine in the end. I heard there's going to be one with BlockBuster soon, so maybe the competition will make the prices better.
  • 125562
    deathbynosleep
    teacher
    7 1 1
    Posted by deathbynosleep on September 20, 2011
    [reply] 3 0
    I could care less what they call themselves...i'm still a little p***** about the huge price increase. I can understand a buck or two...but almost double...
      125565
    • orangearrows
      professor
      2 3
      7 1 1
      Posted by orangearrows on September 20, 2011
      [reply] 2 0
      Agreed. As long as it was $8.99/$9.99 no one cared. Some people I know never even used it month after month but always thought they will. I asked them if you don't use, why don't you cancel? They will say ...just in case we need it. $9 is not a big deal. But as soon as the price increase news came out, they took notice and decided to cancel it. Netflix did not just lose p***** off customers, they lost a lot of low-usage customers too. BIG BIG FAIL for them.
  • 125583
    deathbynosleep
    teacher
    7 1 1
    Posted by deathbynosleep on September 20, 2011
    [reply] 3 0
    Yeah...I barely used the streaming, so now it's getting cancelled...the mail portion may be cancelled also. I can just use redbox for new releases, and download anything else.
  • 125600
    josetring
    master
    Posted by josetring on September 20, 2011
    [reply] 3 0
    With blockbuster codes and Redbox, people are less dependent on Netflix.
  • 127307
    shawndiaz
    beginner
    1
    Posted by shawndiaz on October 6, 2011
    [reply] 1 0
    SNL does a spoof on the Netflix apology: http://www.hulu.com/watch/2849.....ix-apology
  • 127336
    CouponNut
    deity
    23 14 8
    12 10 2
    Posted by CouponNut on October 6, 2011
    [reply] 1 0
    We have the streaming Netflix and hardly ever use it anyways. We're going back to the mailed DVDs.
  • 127663
    HouTex
    admin
    Posted by HouTex on October 11, 2011 [reply] 0 0
    After only 3 weeks and more customer outrage, the company canceled plans to launch Qwikster and issued a statement that "customers would have one website, one account and one password for movie and TV watching enjoyment under the Netflix brand." Stay tuned for their next bumbling decision.

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