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Comments on news posted 2011-09-19 08:55:54: Last week Netflix acknowledged that the company's decision to split apart their DVD rental and streaming tiers -- and impose a massive rate hike in the process -- resulted in them losing a million more subscribers than previously predicted. ..

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AuthorAll Replies

steven s
Premium
join:2002-09-14
Dearborn, MI

reply to BF69

Re: Netflix betting on future Hollywood may not let them have

said by BF69:

mythical 60% price hike.

What?


riturno

join:2004-04-20
Dallas, TX
Reviews:
·AT&T U-Verse

Removing Value

This split was telegraphed over a year ago. Over a year ago they started removing DVD queue management from iOS applications and other little changes followed separating the two.

Now they are removing the links between the DVD and streaming queues. For me this was one of the great values that Netflix had. I could put something into my DVD queue, and if it became available for streaming, I would know.

Also, since I am terrible at remembering what films we've seen, I was foolishly using Netflix for this. I guess that I'll have to find some other way to do this.

Hastings disingenuous tone in both his personalized email, and his comments on his blog post don't do him any favors.

No matter his business rationale, this split removes value for me. We were just about to cut our cable subscription, but after these changes, I am reconsidering.


Tweakbl

join:2008-09-25
Rosedale, WV

I got emailed the Explaination

I got emailed the Explaination From Netflix.

I never subscribed to the DVD parts at all anyway as I seen it as a waste of my money when I could stream,although current releases on Streaming would be nice.

elray

join:2000-12-16
Santa Monica, CA

Hysterical, indeed

The 1 million figure is but a projection, not historical fact. It hasn't happened yet.

It probably will come to pass, but why are bloggers and journalists so eager to report it in the past tense?


Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

reply to pnh102

Re: Netflix betting on future Hollywood may not let them have

said by pnh102:

I can see Hollywood eventually raising the price of content licensing for Netflix to a point that forces Netflix to essentially price itself out of business.

That apparently is Netflix's plan - end the DVD rental business all together.
»www.splatf.com/2011/09/netflix-qwikster/

Further down the road, I wouldn’t be surprised if Qwikster breaks off completely from Netflix, is sold off to another company, or merges with another DVD service, like Redbox.

Why is this happening? Because the future of Netflix is streaming videos. Period. Not mailing them to your house via the U.S. Postal Service, but delivering them to your TV and devices over the Internet.

But to get there, Netflix first has to convince Hollywood to stream its best movies, and it needs to train consumers to stream movies as a default behavior. That means making sure that the streaming business can stand on its own. And that means separating DVDs from the equation, and doing as much as possible to get everyone to stop using them, short of blatant sabotage. (What, you think the bad name, “Qwikster,” is an accident?)


--
»www.rickperry.org/


SysOp

join:2001-04-18
Douglasville, GA

Call it what ever you want I'll still be a customer

I am one of the million who dropped streaming. However, I went from 1 DVD to 2 DVDs by mail.

Goofy name but who cares.


BF69
Premium
join:2004-07-28
Camden, TN

reply to tshirt

Re: Also adding video game rentals

said by tshirt:

said by BF69:

No one has brought his up. I've only had streaming never saw the value of renting DVD by mail. Video games would be different. So depending on pricing I might actually get the disc rental now. Hmmm more money for Netflix. Yep Netflix is sure being dumb.

But they could have added games at any time, without the price hike

Oh so netflix should still be renting up to 10 DVDs a month per customer for $2 month? How is that a sustainable business model?


BF69
Premium
join:2004-07-28
Camden, TN

reply to wings10

Re: What about others

said by wings10:

People say the "Industry" is trying to kill Netflix by raising the cost for them to do business with all the major studios.

But then why don't they go after Red Box and Blockbuster as well?

Why do they all hate Netflix?

They have gone after Redbox. And all the haters that hope Netflix folds, well if they do you can kiss Redbox goodbye too because Hollywood will focus all thier efforts on them. So goodbye to $1 rentals say hello to 60 or even 90 waiting periods. Careful what you wish for haters.


BF69
Premium
join:2004-07-28
Camden, TN

reply to Tweakbl

Re: I got emailed the Explaination

said by Tweakbl:

I got emailed the Explaination From Netflix.

I never subscribed to the DVD parts at all anyway as I seen it as a waste of my money when I could stream,although current releases on Streaming would be nice.

You won't see that at $8 a month. Hollywood won't allow it.


BF69
Premium
join:2004-07-28
Camden, TN

reply to SysOp

Re: Call it what ever you want I'll still be a customer

said by SysOp:

I am one of the million who dropped streaming. However, I went from 1 DVD to 2 DVDs by mail.

Goofy name but who cares.

A million did not drop streaming. And you gave Netflix more money on the DVD side.


BF69
Premium
join:2004-07-28
Camden, TN

reply to thedragonmas

Re: Netflix betting on future Hollywood may not let them have

said by thedragonmas:

yeah, no discount, if i bundle video, internet, phone, thru my cable company, guess what? i get a discount. so instead of charging me $16 for dvd and streaming, how about, oh i dont know, $10 for 1 dvd and streaming, now thats a nice discount that would get me to keep both... oh, but wait.........

Excuse me but as I said show me where you renting 6, 8 or 10 DVDs a month for $2 is profitable for Netflix? Which part of this is too hard for you to get?

you pay $50 or more to your cable company for crap on TV which is mostly commericials. I bet if Netflix could get those 24 million to pay $30 a month you'd have a shitload of newer content on Netflix but people woud bitch about the price.


crazediamond
Maybe you shouldn't be so proud?
Premium
join:2002-01-19
Atlanta, GA

reply to steven s

Re: Groan......gotta keep track of two accounts, now?

my streaming went from 8 to 8


BF69
Premium
join:2004-07-28
Camden, TN

reply to NPGMBR

Re: Netflix betting on future Hollywood may not let them have

said by NPGMBR:

You have to keep in mind that this move means that Netflix (Qwikster) will be purchasing fewer DVDs. Consumers have not gotten used to the idea of not buying them so the Studios will lose out.

Yep Hollywood doesn't get that if Netflix and RedBox went out of business they'd be losing the 2 largest buyers of DVDs. If they think DVD sales are bad now......

jfmezei
Premium
join:2007-01-03
Pointe-Claire, QC
kudos:22

Acceess to rights is the key

Remember that Netflix just lost access to a big library of content from Starz (sp?).

By splitting the 2, it allows Netflix to wage a war on one side to get rights without affecting the other side's access to content.

My new sony vcr allows me to rent sony pictures at $5.99 a shot. Great integration with internet connected vcrs (ok, it is a blue ray player bit I still call it a vcr

But Sony would rather I do business with them directly at a higher price than do business with Netflix.

Netflix did manage to build its brand before hollywood woke up and saw it as a threath. Same with YouTube. I am betting they are planning to survive long enough until Hollywood begins to accept and support this.

What is likely to happen though is that while Hollywood will reluctantly agree to a reduction of their profit margins, they will probably force Netflix to raise prices.

Hollywood doesn't want to kill off DVD/BD sales even though they will go the way of teh CD. People will only buy blue rays for movies that are worth keeping (big stuff like star wars, avatar etc).


yongar

join:2000-12-08
Long Beach, CA

reply to crazediamond

Re: Groan......gotta keep track of two accounts, now?

me too.
I may get a new Qwikster account for PS3 games.
--
Action Yongar


BF69
Premium
join:2004-07-28
Camden, TN

reply to steven s

Re: Netflix betting on future Hollywood may not let them have

said by steven s:

said by BF69:

mythical 60% price hike.

What?

Well all the haters said "All netflix cusomers got a 60% price hike"

let's examine that.

41% have streaming only. No price hike
9% have DVD only no stream. Got a price REDUCTION.

That's 50% right there.

Of the 50% that had both streaming and DVD how many had the 1 DVD at a time plan? Maybe half at most. That is the ONLY plan where the price was raised 60%. HUGE difference between ALL and 25%.


mod_wastrel
iamwhatiam

join:2008-03-28
kudos:1

reply to steven s

Re: Groan......gotta keep track of two accounts, now?

DVD accounts went from getting streaming free (for a long time) to having to pay for it (like everyone else who just wanted streaming), plus getting a $2 fee reduction for DVDs.
--
"Sorry for not responding to your post, but either I haven't seen it yet, or what you said was so devoid of substance that I found it utterly uninteresting."

ArizonaSteve

join:2004-01-31
Apache Junction, AZ

It's a scam to make us subscribe twice!

Hey Reed,
How about making more movies available for streaming?
Every movie I look for says it's only available on DVD!!!!


BF69
Premium
join:2004-07-28
Camden, TN

reply to spewak

Re: Netflix not so smart?

said by spewak:

You keep rehashing the Netflix CEO's rantings! Look where it has put them. They split the company. Their stock nosedived. The Industry wants to kill Netflix. If you and Reed don't see that yet, it is back to Business 101 for the lot of ya!

So renting 8 DVDs a month per customer for $2 is a viable business solution. Yeah ok business guru.

Stick nosedived because investors are morons.

ksharp25

join:2010-09-24
Middletown, PA

Im actually ok with it

I actually accept the 'apology' even though they are not calling it that in the email I got. It explains to me anyway very clearly what they intend to do and why they did. Now, had they said all of this prior to the price change announcement, how many people would be fired up by that and touting 60% price hike complaints. I suspect that had you been told why the price is going that way and that the company is splitting and for that offering video game rentals now as well with the DVD mailing business model..youd be ok with the change. I am. Not enough to re-sign for a combo disc and streaming I am pure streaming..

That said...they have a long way to go on streaming side to win me over on it being worth the $8 a month. And the second they start getting big name content back if that price starts inching up more and more...im out. But the loss of Starz was the closest thing to somewhat relevant content they had going for them.

My point is this. If Netflix is to survive as a streaming service, I need more than Japanese cartoons, tired old low rated TV series (for the most part), horrible weak-sauce B movies and documentaries no one cares about. I dont care if I have to wait 60 days etc like others, but get me relevant AAA content....still for only $8-10 a month. Or Im out. Period. Not paying $25-45 a month just to get what everyone wants and dreams for Netflix to be (which is the price the industry would love)

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