Netflix Kills Qwikster, Keeps DVD Rentals & Streaming Together

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Only three weeks after Netflix announced it was spinning off its DVD rental business as Qwikster, the company has reversed course and plans to keep its rental and online streaming businesses together.

Netflix announced on September 19 that it planned to split its by mail DVD rental service from its online video streaming service, with plans to make the change within a few weeks. Splitting the services meant customers would have to manage two independent movie queues, although they would be able to add Wii, PS3 and Xbox 360 games to their by-mail lists.

Netflix on Qwikster: Never mindNetflix on Qwikster: Never mind

Netflix received an overwhelmingly negative response to the announcement, and it looks like the company listened.

“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,” said Netflix CEO Reed Hastings. “This means no change: one website, one account, one password… in other words, no Qwikster.”

Netflix recently raised its monthly rates and split out the cost for DVD rentals from streaming. The change, company executives said, better reflected consumer interests because they could choose to receive only DVDs by mail, only online streaming, or both.

That change wasn’t received well, either, and led to many people dropping DVD rentals completely and reducing the income Netflix was bringing in.

Mr. Hastings had a comment on that, too. “While the July price change was necessary, we are now done with price changes,” he said.

While Qwikster was announced, it never actually launched. The Qwikster Web site, however, did roll out, although it now redirects to the Netflix Web site.

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Comments

Lee Dronick

Oy!

Greed Hastings

Greed Hastings is on a role! He backpedals out of Quitster, but doesn’t bother to mention what wil become of the newly announced game rentals! This is embarrassing to watch!

Obewan

The Almighty Consumer also gave us BACK Classic Coke didn’t they?

Kings and Queens really get the same Corporate arrogance.
There are some Henry’s and a certain Marie Antoinette they should remember…
But they won’t.
“Let them eat cake if they have no bread.”

Too much success can really be something to loose your head over if you have it up your ass too long.
And your stock.

Obewan

AND FURTHERMORE:

NETFLIX has yet to RESET the PRICE back to days of yore.

Their EXCUSE/RATIONALE for the increase was financing splitting their business model into two houses (to support the redundant overhead expense).
I think that now we are back to the honesty of greed.
National unemployment is at an all time high and the economy is in the shitter.
Hey! Let’s raise our rates. Our Management deserves a RAISE for having such good ideas!
“What do you mean our customers can’t afford bread. Let them eat cake.”

xmattingly

Thank. God.

This one certainly ranks high on the list of Biggest Branding Blunders of the past 30 or 50 years… talk about alienating your customer base. Yeesh!

iJack

Their EXCUSE/RATIONALE for the increase was financing splitting their business model into two houses (to support the redundant overhead expense).

No it wasn’t.
Qwikster was announced three weeks ago.
The price increase was started back in July.
“Video subscription service will no longer offer a $9.99 plan that lets users watch an unlimited number of movies online and rent one DVD at a time. Instead, those who want that combination will have to pay $15.98 a month.”

Obewan

What does “No it wasn’t.” have to do with what I said? What you are quoting is italics merely demonstrates my point. The planned business model split and related price increase was planned by Netflix LONG BEFORE July. Are you just looking to disagree with anything or nothing?

iJack

What does ?No it wasn?t.? have to do with what I said?

What it has to do with what you said, is that Netflix never made that an “EXCUSE.”

Obewan

Give it a rest. First look at the basics from the outside without Bible quotes. Do you think an operation the size of Netflix can split into two separate entities without incurring a huge increase in overhead? Why do you think that they increased their prices? I’ve had their Streaming and DVD service for the last two years and their touted Streaming service of selection and online performance has deteriorated significantly in the last 6 months and their DVD service has remained at about a 90% acceptability level. So what could be their motivation/justification for a 60% squeeze on a customer base who is watching movies to try and forget their troubles because they no longer have jobs? Certainly not an increase in the value of their service.
I would do the battle of the Bible quotes but researching the whole thing for a war of quotes is not worth it. I read a lot of the ‘after the Hindenburg announcement’ PR spin that Netflix was pumping out to try and stem the hemorrhaging after unilaterally pissing off their entire customer base and collapsed their stock, and what they said supported what I have said here. But you have to understand English to get the whole message. Even in the Video that the CEO put up on Facebook, UTube, etc. he pinned the customer price increase to their new business model and the acquisition of games.
Isn’t it after your bedtime?

iJack

You completely miss the point.  I am sure your analysis is at the very least in the ballpark, and maybe spot on.

You made a statement that Netflix made this an excuse for making the changes.  An excuse is a verbal or written statement such as, “canis meus id comedit” (my dog ate it).  I am fairly Netflix issued no such statement.

Obewan

You miss the point. To be completely functional in our society, you must be able to understand what someone is saying when they issue a statement. Most issuers of statements NEVER come out and pin the tail on the donkey. The message is seldom the sum of the words. The message is what is understood by the recipient. “I never said that.” “Not in so many words, but that’s exactly what you said.”
Go to bed before my dog eats it. That means nothing in the sum of the words, but you know exactly what is being communicated. “?????????”?

Paul Goodwin

HooRay. I got their email this morning.  I guess they finally started listening

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