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Netflix breaks up DVD and streaming services, new service is called Qwikster

Written by Andre Yoskowitz (Google+) @ 19 Sep 2011 0:30 User comments (25)

Netflix breaks up DVD and streaming services, new service is called Qwikster Netflix CEO Reed Hastings has posted a lengthy blog entry tonight, explaining the new service and apologizing to customers.
Qwikster is the name for the newly separated DVD-by-mail business, while the streaming service will remain with the name Netflix.

Says the CEO of the newly named service:

So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster”.

We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. Another advantage of separate websites is simplicity for our members. Each website will be focused on just one thing (DVDs or streaming) and will be even easier to use. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated. So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn’t show up on Netflix, and vice-versa.


Hastings says there will be no more price changes, and that Qwikster will have a larger marketing budget than it would have had while integrated to Netflix.

Read the CEO's apology here: An explanation and some reflections

Check the Qwikster intro video here:

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25 user comments

119.9.2011 6:30

Having the services integrated was great for anyone who had both, and probably a great ad for anyone who didn't have both to get the other. Being able to look through streaming movies, see that the movie isn't available for streaming and asking to get it by DVD was great. Makes no sense.

219.9.2011 7:07

How is this any better for the consumer? You already have an army of pisssed off users due to the current price hikes. Now I have to go to two places instead of just one?!

Yeah I feel that my best interests are in mind here.

319.9.2011 7:30

Further proof that DVD by mail is a dying business model. I think part of the proof in that is that they change the name of this half of the business to some unintelligible word. Certain to be forgot by most. While they let the more profitable business keep the household name.

419.9.2011 8:21

"Further proof that DVD by mail is a dying business model. I think part of the proof in that is that they change the name of this half of the business to some unintelligible word. Certain to be forgot by most. While they let the more profitable business keep the household name."

No its not. You have to think of the economics. Netflix doesnt have to pay mail stuffers if people fall for the streaming BS.

Streaming does nothing for me and I am not about to shut of my satellite service. Cutting the cable is out of the question.

Let me know when streaming will provide current shows from the military channel, Speed, ESPN 1&2 and so on.

Jeff

519.9.2011 9:10

Even if they are separate companies is it so hard to integrate their services together if you have both?

Other than that thought I guess they are getting ready for the next 5-10 years by separating the services and letting them live/die on their own, it makes some sense.

A shame about the price hikes I guess with the split they can raise them again...


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

---
Check out my crappy creations
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619.9.2011 9:19

Lol they really are killing themselves. I like how BluRays and Games will have to be upgrade packages, so for one disk at a time you'll end up paying like what 25% more than you would for the BlockBuster route? Me thinks Netflix will not remain a household name into the future.


~*Livin' Electronicallly*~

719.9.2011 9:20

Originally posted by ZippyDSM:
Even if they are separate companies is it so hard to integrate their services together if you have both?

Other than that thought I guess they are getting ready for the next 5-10 years by separating the services and letting them live/die on their own, it makes some sense.

A shame about the price hikes I guess with the split they can raise them again...
http://blog.sfgate.com/techchron/2011/0...uickster/?tsp=1

Jeff

819.9.2011 9:26

Originally posted by Jeffrey_P:
Originally posted by ZippyDSM:
Even if they are separate companies is it so hard to integrate their services together if you have both?

Other than that thought I guess they are getting ready for the next 5-10 years by separating the services and letting them live/die on their own, it makes some sense.

A shame about the price hikes I guess with the split they can raise them again...
http://blog.sfgate.com/techchron/2011/0...uickster/?tsp=1

Jeff
Sounds like they are leaving the que together for the most part, you pay more if you want both.

Though I bet when the dust settles there will be 2 ques.

Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

---
Check out my crappy creations
http://zippydsmlee.deviantart.com/

919.9.2011 10:44
pyrtrumpet375
Unverified new user

so, If you type Quikstar instead of the new Qwikster, you get some websites that want to sell you catheters.

1019.9.2011 13:16

Originally posted by pyrtrumpet375:
so, If you type Quikstar instead of the new Qwikster, you get some websites that want to sell you catheters.
lmao

1119.9.2011 13:59

Originally posted by Jeffrey_P:


Streaming does nothing for me and I am not about to shut of my satellite service. Cutting the cable is out of the question.

Let me know when streaming will provide current shows from the military channel, Speed, ESPN 1&2 and so on.

Jeff
Same here... and as far as name change.....Qwik-$-ter to get your $`s.

1219.9.2011 15:02

Goodbye Netflix !!

This message has been edited since its posting. Latest edit was made on 19 Sep 2011 @ 15:03

1319.9.2011 15:08

Quote:
Members have been asking for video games for many years, and now Blockbuster is giving us real competition we are finally getting it done.
Fixed the quote for ya.

1419.9.2011 18:11

The thing I'm not going to like besides the name is that if I add something in the DVD queue, I'm not going to have the instant play option there anymore. That integration is huge to me.

I also like having the ratings in one place, as now you have to do double the work if you want their system to recommend movies to you. I can see this dragging down their ratings system overall and people just not caring to rate the movies twice; they'll go back to integration in the near future IMO because this is short-sighted in it's application right now.

Not to mention Qwikster is the dumbest name ever.

1519.9.2011 20:50

Just quit Netflix will keep Blockbuster.


Ralph

1620.9.2011 1:46

Update...
http://www.sfgate.com/cgi-bin/article.c...L6M8R.DTL&tsp=1
Jeff


Cars, Guitars & Radiation.

1720.9.2011 1:55

Qwikster????

Qwikster????


How flaming!


(BTW-Quikstar as I recall, having checked into it, is exactly the same in every way as Amway. In fact, I believe they're owned by the same parent company. So they don't just sell catheters.)

1820.9.2011 8:57

Just what are they thinking? Aside from looking like it'll help the bottom line because the doubled price (which it still won't because they're quickly losing their customers) I just don't understand. What's the old saying, don't fix what's not broken?

This message has been edited since its posting. Latest edit was made on 20 Sep 2011 @ 9:00

~*Livin' Electronicallly*~

1920.9.2011 9:52

Originally posted by hearme0:

(BTW-Quikstar as I recall, having checked into it, is exactly the same in every way as Amway. In fact, I believe they're owned by the same parent company. So they don't just sell catheters.)
It's actually Quixtar, and yes, it was one of those pyramid, er, "multi-level marketing" schemes in which you make money by selling products and getting other fools to pay money to join in the scam. I also shook my head at the name, not only because it doesn't say anything about the product ("Net" and "Flicks" is much more clear) but it closely resembles other business names and URLs, and I still can't spell the darn thing correctly.

Fail. Epic Fail.

2020.9.2011 10:08

Reed Hastings Needs to find another job destroying yet another company. He has driven Netflix from a much loved company into a former shell of what Netflix was originally based on.

Alienating customers and unwarranted price increases.. He latest bonehead move making the DVD service into a spinoff?

This BS justifies my cancelling my loooong time subscription with Nutflix six months ago.

Sure streaming is here to stay but longtime customers are blown off with the greed factor.

Holding my flipping the bird middle finger down..
Can you hear me? Let me turn it up!

Jeff

2120.9.2011 10:32

Another case in point is the On Demand features of my DirecTV, where I can get HBO or any other premium shows streamed much the same way Netflix does and many of them are offered in HD that aren't on Netflix. They certainly have competition in the field, but splitting the business, IDK, there will always be people like my parents that don't have internet and still have the need for physical media in their hands.

2222.9.2011 13:53

Originally posted by Jeffrey_P:
"Further proof that DVD by mail is a dying business model. I think part of the proof in that is that they change the name of this half of the business to some unintelligible word. Certain to be forgot by most. While they let the more profitable business keep the household name."

No its not. You have to think of the economics. Netflix doesnt have to pay mail stuffers if people fall for the streaming BS.

Streaming does nothing for me and I am not about to shut of my satellite service. Cutting the cable is out of the question.

Let me know when streaming will provide current shows from the military channel, Speed, ESPN 1&2 and so on.

Jeff
I agree I want the better quality of a Blu-ray over the much poorer of streaming. I like to stream only for its convenience but would never do it as my main platform. Also Netflix just doesn't have enough variety in their streaming queue and the interface for finding movies is horrid.

They should keep the DVD to home as Netflix and change the streaming crap to Qwikster or whatever.

I agree with SProdigy as it was much nicer having them integrated and really there is NO reason not to keep it that way, NONE! This CEO is a moron but what is new these days. They get paid the big money, they make bad decisions and then when they are let go they get paid even more to do the same somewhere else. You got to love it.

It's a shame that now that they have knocked out BlockBuster that they are becoming what they knocked out.

2322.9.2011 17:05

We all know that the warm and fuzzy content provider, which we knew and loved, is dead. The eulogy video above is touching, but the two chums still have their hands in our pockets! Couldn't they have given us a few months to grieve? Well, it's done, and, as charming as Reed Hastings is, all he cares about is our reaction ... pay up or quit.

2422.9.2011 18:02

"Reed Hastings is, all he cares about is our reaction ... pay up or quit."

Which I did, quit that is... Too many alternatives to care about what bonehead move Netflix will do next. I seem not to be the only one who shares the same feelings.
Jeff

2523.9.2011 6:35

What a pair of patronising & condescending dicks, why separate? No good reason. Oh, more money, that's why...
He is sorry? I think not...

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