Netflix-Qwikster deal already getting slammed

Netflix's announcement on Sunday night that it would be separating its DVD mail-order business into its own company, Qwickster, has already generated a lot of criticism from Netflix customers. Company CEO Reed Hastings' blog post has generated a ton of comments, many of them negative. One of them comes from Jonathan Ortega who wrote, "Reed, thanks for reminding me that I should go somewhere else for my dvd (sic) rentals. it was an insult enough that you raised the price on me last month, right in the middle of the biggest recession since the Great Depression. but now instead of a sincere apology, all we get is excuses and a flimsy new name."

Another commentor, David Cowing, wrote, "This is a joke right? Qwikster? I kept both my Streaming and DVD services, against my better judgment, because of the convenience they offered as a combined service. DVD alone is not cost effective compared to Redbox and Streaming offered poor selection, but together even AFTER doubling the price, it still presented value. Now that I will have to manage two separate websites, with two separate catalogs and two separate cues, Netflix/Qwikster has lost all value to me."

Hastings said in his blog post that one of the reasons the company is separating its streaming video and its DVD mail order business is that the two division have different cost structures. He states, "Our view is with this split of the businesses, we will be better at streaming, and we will be better at DVD by mail. It is possible we are moving too fast – it is hard to say. But going forward, Qwikster will continue to run the best DVD by mail service ever, throughout the United States. Netflix will offer the best streaming service for TV shows and movies, hopefully on a global basis. The additional streaming content we have coming in the next few months is substantial, and we are always working to improve our service further."

Meanwhile, the fact that the new Qwikster will also be offering an option to rent Xbox 360, PS3 and Wii game disks is likely to be a big thorn in the side for GameFly, which has pretty much had a monopoly on mail order rental games for the past several years. GameFly has yet to comment about Qwikster's new business plan.

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The actual plan on paper is actually a very smart one. What Netflix is doing is smart: they are separating their hemorrhaging DVD service so they can cut it loose down the line. The way they executed the plan, however, may go down as the New Coke of the 2010s: one of the greatest corporate PR blunders of all time.

I dropped my DVD rental as I never used it anyway, but it's ONLY $8. It's still cheaper then driving to Redbox, or paying for cable, etc.

I don't get why everybody is THAT ****ed off. If you don't like it, leave already and go somewhere else, so we don't have to listen to you. They have a business to run. Jeez.

They failed to check with Twitter...Qwikster is taken by some dude with elmo puffing a joint and talks about drug use and whatever... I'm sure since they can't buy the account per Twitter policy if I was this kid I'd sell my services of my twitter account then just give it to them for a nice fat 2+ million bucks!!

I had kept both despite the price hike, but I've since cancelled the dvd. Sorry, but I don't need greater prices and in this case, greater inconvenience as well. That's what netflix was supposed to originally do for me, simplify and save me time. I'll drop by Redbox on my way out of the grocery store for now on.

Real life Google Talk conversation about it;

me: netflix is splitting its company up, the streaming online will be called netflix and the dvd by mail will be qwikster
2 different websites
Sent at 3:44 PM on Monday
Daniele: that is real dumb
me: yeah they are good at ****ing off their customers
the price hike then this
so close together
Daniele: yeah
i've been debating canceling the DVD part so when that happens i will more then likely cancel
Sent at 3:49 PM on Monday

OH SNAP SON.

Meanwhile, the fact that the new Qwikster will also be offering an option to rent Xbox 360, PS3 and Wii game disks is likely to be a big thorn in the side for GameFly, which has pretty much had a monopoly on mail order rental games for the past several years.

I don't really care what they call it, but having two non-integrated web sites is pure stupidity. Now will we have to rate movies on both sites to get recommendations? What if I'm looking at qwikster.com and the movie is available for streaming on netflix.com? Will I get any sort of indication, or will they be totally separate?

I've been hoping for MORE integration (like being able to manage my DVD queue from my Xbox) and now there's going to be LESS, if not none at all!

Because a company can't have two semi-autocratic branches but present a unified interface for users. Netflix is acting like it's impossible to have "branches" in your company.

The best way to watch new releases is through PPV. Click of a button and I am watching a new release on Dish Network or Directv. Why the hell would you wait in the mail for a movie or stream an outdated movie you can watch online for free?

Boyd Petersen said,
The best way to watch new releases is through PPV. Click of a button and I am watching a new release on Dish Network or Directv. Why the hell would you wait in the mail for a movie or stream an outdated movie you can watch online for free?

Free? Last time I checked, either Dish or DirecTV were far more expensive than even a streaming + DVD plan from Netflix. What planet are you living on?

The irony in all this is that as the more educated subscribers(which aren't that many even though they made what netflix is today) leave netflix, a bigger heard of cattle will take their place for the new service (that we're all starting to hate so much)

And I am glad I dropped their useless streaming service off my account.

But what happens now when you have a DVD that comes up on streaming? Do the sites link so on the INSANELY OFF CHANCE the DVD you want to watch is available on steaming some sort of icon pops up?

necrosis said,
And I am glad I dropped their useless streaming service off my account.

But what happens now when you have a DVD that comes up on streaming? Do the sites link so on the INSANELY OFF CHANCE the DVD you want to watch is available on steaming some sort of icon pops up?

Same here, I dropped streaming, picked up a third DVD at a time and still came out ahead

I still will continue to buy the movies I like. Why be controlled by a company like this when you can just own the movie?

So now...I have to manage ANOTHER freaking site...on top of what I already have...Netflix, Roku, Amazon Prime, Hulu.....etc. No thanks....I get the same stuff from Amazon and Hulu...tired of the BS.

Krieg said,
So now...I have to manage ANOTHER freaking site...on top of what I already have...Netflix, Roku, Amazon Prime, Hulu.....etc. No thanks....I get the same stuff from Amazon and Hulu...tired of the BS.
I wish Google TV could centralize this...

I bet the only reason they are doing this is to screw people who want to stream more than 1 thing at a time. Now there will be absolutely no way to do that even if you have a multiple DVD plan. They will expect everyone to buy multiple streaming plans and that's just stupid.

StevoFC said,
I bet the only reason they are doing this is to screw people who want to stream more than 1 thing at a time.

How can you watch more than one thing at a time?? Or is it for another *cough* sneaky reason?

Mr. Black said,

How can you watch more than one thing at a time?? Or is it for another *cough* sneaky reason?

Register more than one device. Currently I can have 2 simultaneous streams so I can watch one thing on my TV while my kid's can watch something on the 360. Nothing sneaky, this is allowed. Not much longer from what I understand.

Mr. Black said,

How can you watch more than one thing at a time?? Or is it for another *cough* sneaky reason?

think it's like 4 devices. Which is more than Itunes. I could be wrong. Just compare it to the nano recievers for Logitech mice. the Unifying ones. can't connect the mouse to more than one receiver have to unplug one.

I cancelled DVDs by mail when they split their pricing structure, but if they have game rentals for reasonable prices, I might consider signing up again.

Getting slammed? WoW! No shock here. Does Hastings not understand why customers are ****ed? Hastings, the reason customers are ****ing annoyed is because you are taking away the features for streaming and lack of quality movies and also the extreme price changes. What it seems you have just done now is you want to be in competition with Blockbuster and RedBox and cannot take the heat. We were understanding why the price changes in the beginning but now we are seeing a whole different picture with this change. And as your letter saying the name change to Qwikster meaning "faster" so does BS mean faster movie release? Or we still have to wait 90 days after? Yeah nice try, I am just going to stick with $7.99 Netflix streaming and wait to see you burn in hell. I respected and was understanding about the studios being greedy but now I understand. Sure I like video games added but I like to watch more movies, do your damn job as an CEO and get your act together or expect a nice Fing FUNERAL.

TsMkLg068426 said,
Yeah nice try, I am just going to stick with $7.99 Netflix streaming....

Yeah, stick it to them. That'll show 'em.

TsMkLg068426 said,

Fail Troll FAIL! Try again please TROLOLOLOL HOHOHOHOHO...

yeah clearly. lots to do with WoW...zzzzzz wanna watch movies not games. zzzzz

SpyderCanopus said,
Just watching their video released recently, you can tell those two guys are nut jobs and out of touch with reality. It's a real shame.

Most CEOs/board members and investors are.

Netflix is doing what most companies fail at, and that is evolve with the industry. They started off doing DVD by mail rentals, then they jumped into streaming to deliver content straight to your device. Now that the DVD by mail service is becoming secondary they are spinning it off to focus on the future, which is streaming. They're in transition and people are ****ed but this is what they need to do and I'm all for it.

wixostrix said,
Netflix is doing what most companies fail at, and that is evolve with the industry. They started off doing DVD by mail rentals, then they jumped into streaming to deliver content straight to your device. Now that the DVD by mail service is becoming secondary they are spinning it off to focus on the future, which is streaming. They're in transition and people are ****ed but this is what they need to do and I'm all for it.
Thats the thing this isnt what they need to do. Wake up folks optical media is not dead and not going anywhere soon so long as the ISP's keep clamping down on bandwidth. If we had the same bandwidth that other countries that are fiber optic everywhere then I could say kill off optical in favor of digital. The truth of the matter is they got greedy and now they are paying for it. I wouldnt be surprise if their stock tanks again due to this stupid apology with no way of fixing the problem. They need to restore things back to what they were or someone else is going to step in and take their place doing exactly what they did initially.

Gotenks98 said,
Thats the thing this isnt what they need to do. Wake up folks optical media is not dead and not going anywhere soon so long as the ISP's keep clamping down on bandwidth.

This^.

And the fact that not everybody has a powerful or decent Internet connection.

Gotenks98 said,
Thats the thing this isnt what they need to do. Wake up folks optical media is not dead and not going anywhere soon so long as the ISP's keep clamping down on bandwidth. If we had the same bandwidth that other countries that are fiber optic everywhere then I could say kill off optical in favor of digital. The truth of the matter is they got greedy and now they are paying for it. I wouldnt be surprise if their stock tanks again due to this stupid apology with no way of fixing the problem. They need to restore things back to what they were or someone else is going to step in and take their place doing exactly what they did initially.

250GB a month isn't enough? Maybe you should read more books and exercise!

KingCrimson said,

250GB a month isn't enough? Maybe you should read more books and exercise!


Must be nice, my ISP gives a max 100GB a month and because of Netflix I'm constantly over the cap.

^Do you realize how small of a list that is?

There really is only one or two sane isp choices based on where a person lives.

KingCrimson said,

250GB a month isn't enough? Maybe you should read more books and exercise!

Not necessarily if you have children, download programs (LEGALLY), watch other streamed shows etc. etc.
Besides it is well known that in the US the average connection speed is slower than other industrialized Countries and much more expensive.

wixostrix said,
Netflix is doing what most companies fail at, and that is evolve with the industry. They started off doing DVD by mail rentals, then they jumped into streaming to deliver content straight to your device. Now that the DVD by mail service is becoming secondary they are spinning it off to focus on the future, which is streaming. They're in transition and people are ****ed but this is what they need to do and I'm all for it.

true. although the end of Netflix Blu rays high quality video by mail will most certainly mean the death of the USPS. USPS never would have lasted this long without netflix. and network speeds are no where near the quality of dvd let alone blu ray

PatrynXX said,

true. although the end of Netflix Blu rays high quality video by mail will most certainly mean the death of the USPS. USPS never would have lasted this long without netflix. and network speeds are no where near the quality of dvd let alone blu ray

What!?! Netflix was founded in 1997 and begun their services 1999, the USPS was founded in 1775. I think they'd be just fine without Netflix.

I didn't care before and I don't care now. I'll still maintain the dvd portion along with my streaming. When it comes down to the facts Netflix/Quikster is still the best value FOR ME.

n_K said,

It was a trickster mister....

he may be right he may be wrong but he's utterly wrong with that name. Nobody will find the site so might as well have us forwarded. Should just name it RedEnvelope. They used it for their indie dvd label. Why not. Quickster is how many are woing to spell it. wonder if someone bought that one to rip qwikster fols off. like facebok.com yeah been there before. Clearly they need new management and fast. Killed off the rental biz for Blockbuster which we no longer have in the area. Might end up at family video soon. So the true stalwart fans are punished the most. I picked a side and stuck with them. Some picked both most left. Wonder if Blockbuster video is ready for me to check their online rentals again. or are they out there still.