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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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steven s
Premium
join:2002-09-14
Dearborn, MI
reply to 88615298

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

said by 88615298:

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?


FFH5
Premium
join:2002-03-03
Tavistock 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.


88615298
Premium
join:2004-07-28
West Tenness
reply to tshirt

Re: Also adding video game rentals

said by tshirt:

said by 88615298:

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?


88615298
Premium
join:2004-07-28
West Tenness
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.


88615298
Premium
join:2004-07-28
West Tenness
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.


88615298
Premium
join:2004-07-28
West Tenness
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.


88615298
Premium
join:2004-07-28
West Tenness
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


88615298
Premium
join:2004-07-28
West Tenness
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:23

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
Virginia Beach, VA
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


88615298
Premium
join:2004-07-28
West Tenness
reply to steven s

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

said by steven s:

said by 88615298:

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!!!!


88615298
Premium
join:2004-07-28
West Tenness
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
Reviews:
·T-Mobile US

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)


88615298
Premium
join:2004-07-28
West Tenness
reply to jfmezei

Re: Acceess to rights is the key

said by jfmezei:

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

They haven't lost anything from Starz. Starz content is still on Netflix until February. Before then Netflix will write a nice big check to Starz and everything will be kosher.


88615298
Premium
join:2004-07-28
West Tenness
reply to ArizonaSteve

Re: It's a scam to make us subscribe twice!

said by ArizonaSteve:

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

blame the studios not Netflix. This will require MUCH more money from Netflix. Money they could only get by raising prcies. Prices people are now bitching about. You can't have it both ways.


David
I start new work on
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:101

now they should pick up

Redbox for the win, or redbox can pick them up.

The video store of the future.


88615298
Premium
join:2004-07-28
West Tenness
said by David:

Redbox for the win, or redbox can pick them up.

The video store of the future.

who cares. Netflix doesn't care about DVDs. Only 9% of their customers are on DVD only plans. Let them go to Redbox. Saves Netflix money they can use for streaming.


Uncle Paul

join:2003-02-04
USA
kudos:1
reply to FFH5

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

Until I can get the same release dates on streaming that I can on DVD, then it's going to be DVD rentals for me. I'm interested in seeing new content, not last year's movies or B movie flops.

Then there's this whole I like Bluray movies and streaming in 1080p/24 with DTS is a killa on the caps these days.

All streaming is right now is a means to fill the gaps and catch up on old TV series.


88615298
Premium
join:2004-07-28
West Tenness
reply to ksharp25

Re: Im actually ok with it

said by ksharp25:

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)

you're not getting newer movies for $8-$10 a month it isn't happening. That is fantasy talk. You want movies 60 days after DVD release and Netflix only charge $10 a month max. Well let's do math. $10 X 24 million X 12 months is $2.88 billion a year. That is not enough money to pay the studios to get movies 60 days after DVD release.

Hell Starz wanted $300 mil per year for their movies which are a year old at least AND they only wanted it to be for customers that had BOTH the streams and DVD package. Which meant streaming only customers like me would have been left out of the cold. Should Netflix have made this deal? I'm glad they didn't. As I said this is for movies that have been out a year or more. Imagine what 60 day old movies would cost.

amungus
Premium
join:2004-11-26
America
Reviews:
·Cox HSI
·KCH Cable

don't care

I only ever signed up for Netflix in order to get streaming. Sure, I tried blu-ray for an extra buck, but I still mostly kept discs for weeks/months at a time because I didn't care.

If they can ever get more content, it'd be nice. They've been at this for years, and still have a rather limited selection.

In comparison, Rhapsody and Spotify have a large swath of music available to stream. The comparison with Netflix and online movie selection is not worth making at this point.

There really is no sensible reason to keep perpetuating physical releases or DRM encumbered iTunes/Amazon/etc. purchases as the ONLY way to watch movies at home. I'm not counting "on demand" because that obviously has its place as well. More people would 'rent' (stream) more often, and there would be more profit in the long run. Hopefully someday, the studios, the producers, and the ISPs "get it."

For now, we're left with capped internet service that has NO reason to exist, fearful greedy studios, and a company (Netflix) that is trying to sell people something they want to pay for, but can only get a taste of.

Oh well, while they're spinning things off/restructuring, can somebody please tell them that their website is rather terrible


88615298
Premium
join:2004-07-28
West Tenness

Blame the correct people

blame the content holders not Netflix for all of this

Starz wanted $300 mil per year for their movies which are a year old at least AND they only wanted it to be for customers that had BOTH the streaming and DVD packages.

Netflix offered $250 mil and wanted everyone to have access. Now even if Starz took the $250 mil that's $220 mil per year increase over what Netflix is currently paying. Now where is Netflix going to get an extra $220 mil a year without increasing pricing somehwere? And this is just for Starz this doens't even mention their other deals that are soon to expire and newer deals Netflix wants to do.

Now Netflix can take the $250 mil they wer going to give Starz and put it to getting content from somewhere else. So fuck Starz. But NOOOOOOOOOOOOOO everyone wants to blame Netflix. Starz gets a free pass even though THEY are being greedy assholes.

ggultra2764

join:2007-09-13
Cambridge, NY

This seems too sudden...

Netflix just hiked up their price rates for dual DVD/ streaming service and separated both into separate packages. And just when customers were getting used to this, now they're making them separate providers? Confusion, much?


Jason Levine
Premium
join:2001-07-13
USA
reply to 88615298

Re: Netflix not so smart?

What you're ignoring is that, before the split, Netflix used their DVD service to negotiate with studios. They agreed to a 30 day DVD waiting period and, in return, got more streaming titles (and reduced DVD prices).

Now what will they use to negotiate with the studios who see any streaming as a threat to DVD sales?
--
-Jason Levine