The Netflix Thread

[Dukefrukem]

The worst part about this is the two sites will not talk to each other. WTF?

[Kurosawa Fan]

This feels like Netflix's response to those hoping they'd soften their stance on the price hike. "Just in case you had any illusions of us going back to our former pricing, we're going to drive the final nail in the coffin by separating the two services completely, with separate names and sites."

I was fine with the price increase, and only cancelled the DVDs because I'm too swamped with school to watch much anymore, but this move is a total head-scratcher to me. The only way I can read it is as a giant middle finger to the people who have been complaining about the increase.

[Yxklyx]

They just want to concentrate on the streaming service which makes sense since that is the future. On the other hand this alienates (actually eliminates in a matter of speaking) their DVD subscribers. The other bad thing about this move is that it looks like a reaction to their recent stock value drop. The timing implies that the change was made for stockholders not for customers - also bad for business.

[EyesWideOpen]

The separating doesn't bother me in the least and they're adding videogames which is huge for me. It takes me a day to get a netflix movie and 4 days to get a gamefly game so switching to netflix for games means more time each month with games in my hand.

[number8]

The worst part about this is the two sites will not talk to each other. WTF?

My guess? They're betting on DVD being a dying format and they're doing this so it can be a wholly separate company that they can easily sell without damaging the Netflix name.

[Fezzik]

My guess? They're betting on DVD being a dying format and they're doing this so it can be a wholly separate company that they can easily sell without damaging the Netflix name.

It's actually a decent decision from that standpoint.

And to be honest, this saves me some money. i was about to subscribe to Gamefly. No reason to now.

[Dukefrukem]

My guess? They're betting on DVD being a dying format and they're doing this so it can be a wholly separate company that they can easily sell without damaging the Netflix name.

Good analysis 8. I tend to agree, but there are still tons of out of print DVDs that do not have a scheduled Blu-ray format planned.

I just noticed that dozens and doezens of movies I had in my SAVED list Queue are now missing.

Anyone else?

[Irish]

My guess? They're betting on DVD being a dying format and they're doing this so it can be a wholly separate company that they can easily sell without damaging the Netflix name.

I read that line from a couple of pundits, too. Problem with it is if you take a closer look, it makes no sense.

If DVDs are a dying format (and they are, but the studios don't want to let go), who spins off a business with the intention of selling it ... And then expands the business?

Since everybody knows DVDs are on their way out ... Who exactly is the mythological purchaser of the spinoff? Its main assets are on the operational side, not the product side, and the customer mailing list.

The whole move makes no sense. Netflix could allow the two services to interoperate (they've been doing it for years, after all). They should have gotten into games 5 or 10 years ago, before Gamefly and Steam got a foothold. On top of that, high end games aren't arguably where the market is headed.

I feel for Hastings. 50% drop in 2 months is nasty. More and more, though, it looks like Netflix's success was the result of good timing more than good strategy.

Edit: the brand hit you suggest they're avoiding, they're taking in the face right now, and have been for the last two months. Qwikster, as far as I can tell, doesn't give them any clear advantages.

[Yxklyx]

DVD (and BluRay) are a dying format.

Another thing is that I was expecting to move from DVD to streaming at some point in the future. This split makes that harder to do and I might even end up with a competitor.

Finally, These changes might be deliberate moves to devalue Netflix in preparation for a sale to a larger corporation.

[Ezee E]

This move would make sense if 50% of the tiles were streaming. I'd still say it's less then 20%.

While sales of DVD/BluRays are dying, I think the Redbox, Walmart kiosks are what's giving Netflix competition more then anything.

[Irish]

Finally, These changes might be deliberate moves to devalue Netflix in preparation for a sale to a larger corporation.

Interesting idea. Going from a ~$300 share price to ~$150 is a helluva devaluation though.

[Mysterious Dude]

I hope DVD's don't die too soon; I still have about 300 on my queue.

I assume Quixter won't tell me whether a movie is available for streaming on Netflix. That will be annoying.

[Lucky]

That email this morning did nothing but remind me how I never use the DVD service anymore. I downgraded my plan to stream-only right after.

[Spinal]

That email this morning did nothing but remind me how I never use the DVD service anymore. I downgraded my plan to stream-only right after.

This was my reaction as well.

[ledfloyd]

i'm very tempted to downgrade, but i still want access to all the stuff i really want to see that isn't on streaming.

i had no problems whatsoever with the pricing hike. it didn't seem unreasonable to me given the services they're offering. this just makes no sense to me, and having the two sites not communicating with one another is a huge setback. 'people are upset with our company? ok, we'll give you two seperate lesser services!'

[MadMan]

I'm currently using streaming only, and I figure its probably for the best seeing as I was tired of having to return the DVDs in the mail. Still this splitting of services probably means I'll never go back to DVDs in the mail at all.

Which might in turn result in me using RedBox and even having to crawl back to my old local video store even more, although I haven't begun doing that just yet.

[Spinal]

I refuse to use RedBox. I'm not renting movies from the same place that people buy Big Gulps and Egg McMuffins.

[Lucky]

I refuse to use RedBox. I'm not renting movies from the same place that people buy Big Gulps and Egg McMuffins.

The one I use sometimes is by a Walgreens if that makes you feel a little classier about the situation.

[Watashi]

Tell us how you really feel, Spinal.

[MadMan]

I refuse to use RedBox. I'm not renting movies from the same place that people buy Big Gulps and Egg McMuffins.

:lol:

The only ones I've seen are by WallGreens and Wallmarts, actually.

MATCH-CUT: Were We're Too Elitist to Rent Movies From Places Near McD's.

[Spinal]

Tell us how you really feel, Spinal.

You're renting movies from a VENDING MACHINE! It would be just as happy to offer you a 20 oz Coke or giant gumballs!

[number8]

You're renting movies from a VENDING MACHINE! It would be just as happy to offer you a 20 oz Coke or giant gumballs!

Dude, I've seen people buy iPhones and used schoolgirl panties from vending machines. DVDs are a step up.

[Spinal]

Dude, I've seen people buy iPhones and used schoolgirl panties from vending machines. DVDs are a step up.

:lol:

[MadMan]

For the record though, I've always thought about starting a band called "Rage Against the Vending Machines."

But its a terrible name, and I'm sure I will get sued, and I have no musical talent. So that dream ended.

[number8]

More interesting theories.

This one's written before the split announcement:

Netflix tried to argue that you should only count users that actually connect digitally and actually watch a film. While they originally offered digital streaming bundled with DVD rental, many of the rural customers likely never actually “connect” to the digital product. This argument may have worked for a while, but eventually Hollywood said, “No way. Here is how it is going to work. You will pay us a $/user/month for anyone that has the ‘right’ to connect to our content – regardless of whether they view it or not.”

That's almost too spot-on. Could this be the reason?