Netflix shoots itself in the foot... aka no more free streaming

[gh4chiefs]

Not keen on the "Qwikster" name. I'm already seeing people spelling it "Quickstar" and I'm betting a few people find themselves staring at the Amway website in bafflement (Quixtar). They could have just called it Netflix By Mail. Or Netflix II: The Revenge. Or Netflix Old School...or...something...

Yeah I just don't get this part at all. Netflix is an established, successful business that started as a DVD business, and has an established brand name identity with the public. Why eff with that?

Maybe they decided the "Netflix" brand has been wrecked and they really want to save the DVD business, so they're giving the DVD side a new name so people won't think, "Hey, that's Netflix, those bastards!"

Yeah but they're keeping Netflix for the streaming company. I'm inclined to think they may wreck both in the process. I'm not as convincedl, as many here are, that streaming is truly the future, what with the enactment of data caps by ISPs and the lack (or high expense) of sufficient broadband coverage in many areas.

 

[Brikar99]

I'm really impressed by how quickly Netflix went from having one cheap, convenient service to two less cheap, less convenient services...

 

[Scout101]

You'd think that from a PR standpoint, they might have been better announcing they were going to separate the 2 companies first, and then announcing the pricing scheme. At least that way, it sets people up for one real change. This way pisses people off twice in short order...

 

[Professor Zoom]

Ugh. You know, I was actually FINE with the price increase. I get it. I had options, and I choose both at a higher price. That's fine.

NOW, they are splitting up the company? TWO different websites? TWO different bills? Now, I'm pissed.

One site. That's all that I want. I don't want to have MORE logins, MORE places to go.

Dumb move.

 

[doubleohfive]

I was just getting used to the idea of paying more for both; I think (more due to laziness than anything else) I was going to just let it be. Now, I'm not so sure. I love Netflix, and I understand their desire to grow and adapt to the market, and it'll be interesting to see what happens in the coming months with them, but I've got to say, I'd be lying if I said I was thrilled or optimistic about all this.

 

[bigdaddy]

I'm impressed by how much they fucked this up.

Netflix will willingly admit they want to drop the DVD part of their business, but this is a complete nightmare.

Mailflix and Netflix would have made more sense. One by mail and one by the net. The name they picked that is so stupid that I won't even spell it looks like a 4 year old put some letters together.

 

[RoJoHen]

Well, if I wasn't dropping the DVD service before, I am now. And I've pretty much watched everything I wanted to via streaming, so I think I'll be canceling that soon too.

 

[Broccoli]

I think Netflix's long-term goal was always to move into streaming and eventually drop the DVD-by-mail business model, hence the separation.

Yup. This is just the next step in their long-term goals.

The new name sounds like it was invented by a 5 year old.

So, just like "Netflix" then?

 

[Spot's Meow]

We all knew this day would come eventually, when Netflix dropped DVD service to focus on streaming exclusively, but it has come way too soon! This is something that should happen at least five years down the road, when they have built up a more impressive streaming library and more subscribers have naturally shifted towards that rather than DVDs.

It was already happening to me; five years ago I used the DVD service exclusively and thought that the introduction of streaming had nothing to do with me since I would never use it. Now, my DVD queue has dwindled to a very low number while my instant queue has grown. If other customers have followed a similar trend, then in a few more years the branching off of the DVD service would not seem like that big of a deal.

However, the streaming just isn't good enough yet to justify this move so soon. Now when I think about it, I'm just paying for an online streaming service that only has a handful of movies and two or three TV shows that I even want to watch. I might as well just get Hulu Plus and be able to watch more television online. Or not pay for any such service and just continue to watch TV like I did for years. The movies on instant streaming just suck.

 

[Gary Mitchell]

It seems as though they are trying to wreck their company or at least lose subscribers. First they remove the community features. Then they screw up the functionality of the website. I hate the price hike but I understand it. Now this.

I was going to try alternating on month streaming and one month discs but now after my gift subscription lapses I might just drop Netflix altogether.

 

[Kestra]

I'm really impressed by how quickly Netflix went from having one cheap, convenient service to two less cheap, less convenient services...

Ugh. Yes. I've been toying with the idea of adding DVDs back onto my plan and I know I can still do that but it's just less appealing. I liked having everything on one website, of looking up a movie or show and seeing if it was streaming or on disc and being able to select it immediately. I'm already annoyed with their interface and now if I want a movie I have to sign up for the other service and do a search on two websites.

The silly thing is that it's not even that bad and I know that the things I'm complaining about are minor, but it's like they went about the changes in a way to make you really feel all of them and hate them all.

On another note, I've seen a lot of headlines about how many subscribers they've lost, but has anyone seen stats about people changing plans? I'd be interested to see how many people went to a lower priced plan.

 

[RoJoHen]

The silly thing is that it's not even that bad and I know that the things I'm complaining about are minor, but it's like they went about the changes in a way to make you really feel all of them and hate them all.

Netflix has done a really shitty job of communicating with their customers with all of these recent changes. I'm more annoyed about that than any of the changes themselves.

 

[LitmusDragon]

From the Fark thread about this:

"1. Create new industry (DVDs by mail)
2. Do it way better than anyone else
3. Drive nearly all the competitors out of the DVD rental business and have a near-monopoly
4. Build up over a decade of brand recognition
5. Throw it all away.
6. Focus instead on delivery system that has tons of competitors and burdened by content providers with draconian licensing contracts"

That about sums it up

 

[Professor Zoom]

The silly thing is that it's not even that bad and I know that the things I'm complaining about are minor, but it's like they went about the changes in a way to make you really feel all of them and hate them all.

Netflix has done a really shitty job of communicating with their customers with all of these recent changes. I'm more annoyed about that than any of the changes themselves.

I feel like they have also done a shitty job of LISTENING to the customers.

 

[Guartho]

^^^
Exactly. It would have created a precedent. Suddenly HBO, Showtime and maybe even media conglomerates like NBC/Sci-Fi and their host of channels would've have insisted on a unique pricing structure for their product.

You know, I wouldn't necessarily be opposed to this. I've not had cable/satellite for more than 6 years because I don't want to pay for a bunch of crap I don't want. I've always said that I'd have it in a heartbeat if I could build my own package of channels ala-carte. If Netflix essentially made that available to me and the network shows were available for streaming as soon as they aired my spending with Netflix would jump from $8/mo to probably $40 or $50.

 

[Temis the Vorta]

"Qwikster"?

Those fools need to hire some competent marketing/branding/strategy help immediately before they do any more damage to themselves.

They could have just called it Netflix By Mail. Or Netflix II: The Revenge. Or Netflix Old School...or...something...

Netflix Classic.

However, the streaming just isn't good enough yet to justify this move so soon

Which is why they need to keep the DVD business bundled with streaming. The streaming part is the future, but until they can build a comparable library like they have with the DVDs, it will not be "there" yet. The DVD customers are the seeds from which the streaming business will grow.

They can charge a separate pricing structure for DVD vs streaming but really what I would have done is just played along with Starz, and priced Starz content at a premium right at the point where the customer makes the "add to queue/don't add to queue" decision. And make damn sure they understand that the price hike is for Starz, not for Netflix generally. I'd put their fucking logo right next to the icon that says this costs you two rentals not just one.

If customers want to throw a fit, let them throw a fit at Starz. If all this shit had blown up in Starz' face, that would have sent a chilling message to studios that they better not get egotistical about how much their content is actually valued by subscribers. Netflix could have used the shitstorm to their strategic advantage, to gain leverage over content producers, instead of being hurt by it. The whole logic of the internet is driving digital content down, down, down towards zero. Starz and the other content makers can fight all they want, but they are fighting the tide.

Netflix can still have a business as the YouTube of professionally produced content, and that is how they should start seeing themselves now. YouTube's value is in its size and its community which is rating and sorting content, and publicizing it, for free. Netflix's business is going to be the free labor provided by its customers because content will eventually be worth nothing. Starz is on the wrong side of that equation, but Netflix is apparently too stupid to understand that they are on the right side, and should take advantage of that!

First they remove the community features.

That's the stupidest thing - they need to be adding community features, because that's what their business is going to be one day.

 

[Random_Spock]

The silly thing is that it's not even that bad and I know that the things I'm complaining about are minor, but it's like they went about the changes in a way to make you really feel all of them and hate them all.

Netflix has done a really shitty job of communicating with their customers with all of these recent changes. I'm more annoyed about that than any of the changes themselves.

I feel like they have also done a shitty job of LISTENING to the customers.

Agreed. They've basically shot themselves so many times in the foot that it's pathetic.

 

[Temis the Vorta]

This photo is great - read the logo of the DVD he's holding up.

Secret message to shareholders?

 

[Random_Spock]

This photo is great - read the logo of the DVD he's holding up.

Secret message to shareholders?

Brilliant . Maybe XD. Crash ftw. That's one time that that movie is good for.

 

[Brolan]

I don't think they've done themselves any favors by breaking these two components into separate websites. If they're going to push me to a new website for my DVD queue, maybe it's time to take another look at Blockbuster's service.

...

Well let's see here, One DVD at a time Blockbuster $10, Netflix $8
Two out at a time, Blockbuster $15, Netflix $12. Yup, boy those Netflix guys are really screwing everyone, I can't wait for everyone to join Blockbuster so they can pay more.