Netflix Changing Pricing Structure

[greenrage36]

Also makes me wonder if the Netflix CEO has some money invested in Blockbuster...

Heh...GOOD call on that one dude! I just said the same thing to a friend of mine the other night!

I also signed up for a free Blockbuster trial too..just in case the DVD-by-mail thing DOES tank via Qwikflixretardothingie....

 

[NHawk19]

Actually I read one of the comments that got me thinking. Wonder if they're going to try to sell the DVD's by mail portion of the business?

This was my post on their blog.

Mr. Hastings,

How does this whole thing work exactly? You offer a service that combines both streaming and DVD by mail allowing users to their viewing choices under one account. Now not only are we facing price increases we need to manage what was once a sole source service in two locations. Meaning we your loyal customers have to work harder to do business with you. Seems to me that business 101 is make it easier for the customer to want to give you money.

While I think we all understand that the future is streaming, your content is not there yet. So instead of completely segregating the two why not maintain them under the brands of Netflix Streaming, Netflix Gaming, and Netflix by Mail or something along those lines. That way Netflix can maintain its integration and ratings program across the company and allow people who may not use streaming to see what is potentially available if they upgrade. Or stream a one shot movie if they want to try it for like $1 or something (if you use this I expect a commission).
...
So with that I have a few questions since I may be deciding to move to is it Qwikster, Quickster, or Quikster?

1. Will I need to re-create my queues?
2. Will I need to re-rate everything I've rated?
3. If I decide to upgrade will I have to re-create everything I've already done?
4. If I do have to re-do what I've spent years doing on one page what's the incentive to re-do it?

Not a lot of us like re-work, and that's just what you've given us along with a price increase, an additional website to deal with, and an additional bill to watch for.

So why should we stay? What's the benefit? You've not told us any of that

If they plan on selling the dvd's by mail portion I could understand the split outside of that the biggest benefit they offer is combining both DVDs and streaming on the same site. Even the service plan split sort of made sense if you want to use economicst to force users away from DVD's by mail slowly. The thing is they're just pushing people away from DVD's too quickly especially when you consider the data caps now being imposed by the cellphone carriers.

 

[marvelman2006]

This is still one big mess on netflix part. I dont believe the world is ready yet to go all streaming, christ theres still people who dont even own dvd players or are just going to disc format let alone bluray. Streaming/HD/Bluray are not nesseciteis in life but luxuries and in an economy like this its almost bonehead like to think otherwise. I predict netflix out of business or on life support like blockbuster by this time 2013.

"if it aint broke dont fix it"

 

[NHawk19]

They could fix it if they're next post is "eh we screwed up. you spoke. we're no longer pursuing Qwikster and we're adding gaming rentals"

Then learn to leave well enough alone.

 

[Teelie]

Sadly won't happen. They are determined to go on their road no matter what and they believe it's right. It should have been obvious when they took that huge hit this was wrong but instead they're going to push ahead and hope it doesn't kill them.

 

[Sam Fisher]

http://theoatmeal.com/comics/netflix

 

[TheVileOne]

Wow, books and documentaries will be written about the rise and fall of Netflix.

Has a company ever fallen so hard so quickly? I mean just a few months ago everyone loved Netflix and now they are in the toilet.

 

[Spidey-Bat]

I wouldn't say this is the end for Netflix, but they better hope they're right to be putting their eggs in the streaming-only basket. This is the end, we're seeing the beginning. It's going to take a long time to get back to where their stock was in early July.

 

[Midnyte_Sun]

As soon as they allowed me to stop using the DVD by mail service I did. I was only interested in the direct streaming. I upgraded my wifi network and have 7 wireless devices in my house that are wifi and netflix ready. Now that my droid has it, I'm perfectly satisfied.

 

[Raiden]

Wow, books and documentaries will be written about the rise and fall of Netflix.

Has a company ever fallen so hard so quickly? I mean just a few months ago everyone loved Netflix and now they are in the toilet.

I think the poor communication that Netflix had regarding their new monthly rate, the hiking of the plan rates, and now the suddenly separation of Netflix into two different companies all have something to do with their drastic decline, not to mention that they have done all these within a year. I still don't understand how all these changes will actually be profitable to the company even if they were losing money before, since they not only lost millions of subscribers but their stock value also went down.

 

[MadVillainy]

Still confused lol.

Does anyone see how splitting Netflix into 2 companies will help it?

 

[wiegeabo]

Still confused lol.

Does anyone see how splitting Netflix into 2 companies will help it?

MAGIC!

 

[The Squirrel]

Will Netflix Sell Streaming Side To Amazon?

Wedbush analyst Michael Pachter is at it again with his latest theory. He predicts that the reason Netflix split its DVD rental and digital streaming business is so that it would be easier to sell the steaming business to Amazon.

“Upon reflection, it appears to us that the driver for the separation of Netflix into two businesses—Netflix.com (for streaming) and Qwikster.com (for DVD rentals) —was to position the streaming business for sale to Amazon.com,” reads an excerpt from Pachter's research on Forbes. “In our view, Amazon has always wanted to be in the streaming business, and has been constrained from buying Netflix due to tax considerations. The split up of Netflix’s business addresses the state sales tax issues raised for Amazon in having a ‘nexus.’ If Amazon were to acquire only Netflix’s streaming business, it could triple the size of its content library, and gain traction as an industry leader. Netflix streaming has current content deals that provide it with access to movie content during the premium cable TV window, and Amazon has the financial resources to secure additional streaming rights, including Starz content. Netflix’s financial flexibility is quite limited, while Amazon’s is virtually unlimited.”

Pachter also details tax benefits, competition elimination, and more. This theory makes a lot of sense, and blending Netflix's streaming deals with Amazon's piles of cash and business smarts could mean a lot more content for subscribers. Of course, there's no evidence of an impending deal. But it sounds like it would make a lot of sense.

 

[wiegeabo]

And that's why Netflix's CEO purposely caused the stock price to plummet, so it would be easier for Amazon to buy them.

Yes...yes...it makes perfect sense. He's not a madman, he's a mad genius!!!

 

[Donut]

It would be a good move if Amazon got all of Netflix's stuff streaming wise

 

[The Squirrel]

I wonder how that would affect my subscription? I mean I'm already a Amazon Prime member, so I have access to their streaming.

 

[greenrage36]

I'm still going by the magic theory...magic cast by little elf bunnies. OBVIOUSLY the best answer...

 

[Teelie]

I've already seen similar claims only for Netflix to sell off Qwikster to someone else so they can focus on streaming since everyone and their grandmother in tech news is so positive physical media is going to be dead in a short time.

So either Hastings is sick of being successful and decided to cash out in the most moronic way possible or these guys are talking out their asses. I think Hasting screwed up but this doesn't seem like the way he'd sell off his business had that been his plan.

 

[Donut]

I wonder how that would affect my subscription? I mean I'm already a Amazon Prime member, so I have access to their streaming.

Not all of their Streaming are for Prime Members though. If they added their entire TV Library to their Prime Streaming. I would Subscribe in a heart beat

 

[StrainedEyes]

Not all of their Streaming are for Prime Members though. If they added their entire TV Library to their Prime Streaming. I would Subscribe in a heart beat

Sure, but that would require the same deals that Netflix has had such trouble making and spending millions of dollars on.

I would love it if HBO shows were available for a subscription streaming service (Prime or Netflix), but they probably never will be because HBO isn't going to make a deal like that anytime soon.

 

[Donut]

I would love it if HBO shows were available for a subscription streaming service (Prime or Netflix), but they probably never will be because HBO isn't going to make a deal like that anytime soon.

HBO has their own site known as HBOGO.com for Streaming their Shows & random Movies. All you do is login with your Providers Online Account & viola

 

[StrainedEyes]

HBO has their own site known as HBOGO.com for Streaming their Shows & random Movies. All you do is login with your Providers Online Account & viola

Exactly, you need to be paying for cable and an HBO subscription in order to use HBOGo.

I use Netflix and Hulu so that I don't need to pay for cable, it's not worth the money. I am patiently waiting for the day HBO offers its own subscription or agrees to be on Netflix.

 

[Donut]

I am patiently waiting for the day HBO offers its own subscription or agrees to be on Netflix.

Why would they be on Netflix when they have their own thing & it seems to be working ? They have no need for Netflix or Amazon or Itunes

 

[marvelman2006]

I canceled netflix yesterday and went with blockbuster and only $10 a month and dont have to pay extra for bluray and have to wait 30 days to get a new release. Plus unlimited in store exchanges.

 

[cloverfan98]

I really, really, REALLY hope Netflix comes to their senses and revert to their old business model.