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

submitted 252 days ago by HouTex in "Stores / Merchants", last updated 229 days ago 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#!

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learner

Posted by MattR336 252 days ago

[reply]

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.

professor

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Posted by orangearrows 252 days ago

[reply]

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.

professor

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Posted by lootango 251 days ago

[reply]

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).

professor

2 3

Posted by orangearrows 251 days ago

[reply]

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.

beginner

Posted by BeckaKnows 251 days ago

[reply]

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.

teacher

Posted by deathbynosleep 251 days ago

[reply]

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...

professor

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Posted by orangearrows 250 days ago

[reply]

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.

teacher

Posted by deathbynosleep 250 days ago

[reply]

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

master

Posted by josetring 250 days ago
[reply] 3 0

With blockbuster codes and Redbox, people are less dependent on Netflix.
127307

admin

Posted by shawndiaz 234 days ago
[reply] 1 0

SNL does a spoof on the Netflix apology: http://www.hulu.com/watch/2849.....ix-apology

professor

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Posted by CouponNut 234 days ago

[reply]

We have the streaming Netflix and hardly ever use it anyways. We're going back to the mailed DVDs.

admin

Posted by HouTex 229 days ago

[reply]

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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