Netflix spins off DVD division under new brand: Qwickster
CEO Reed Hastings has had a public change of heart. Coming on the heels of a rather controversial price increase, Netflix is spinning off the DVD-by-mail division into a separate entity called “Qwickster” and adding video game options.
From the Netflix blog:
I messed up. I owe everyone an explanation.
It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology. I’ll try to explain how this happened.
For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business. Eventually these companies realize their error of not focusing enough on the new thing, and then the company fights desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly.
** Editorial Correction – the spelling of Netflix’s new company is Qwikster (no “c”). We apologize for the mispelling.
I have to say, I put up with the price changes and all the other stuff that has gone on within the past year. I stuck through, and now I get to deal with 2 websites? I am really un-happy about that. I found it very convenient to be able to see what I wanted in by instant and what would be mailed to me. I am not feeling that my choice to stick with Netflix was the correct one, hopefully you can prove me wrong
Get over it people! It’s really not a big deal! Everything is going the way of streaming anyway! DVD will be just like VHS soon! I have had Netflix since they started and will stay with them! It’s cheap, fast and so easy to use! Now games as well? Just another positive!
There is not a better, faster or easier option to use! Get over it! In a couple weeks you should be able to have it all figured out. Simple!
Change of heart?
Your intro makes it sound like Quickster came solely as a result of the general discontent with the price increases.
All Mr Hastings is saying is that the way he/they handled the was-already-going-to-happen separation could have better. No more, no less.
I signed up for Netflix in the last week or two so that I could not only stream online, which I do most often, but also get the DVDs as well. And be able to watch at home on my laptop and be able to let my girlfriend and her family watch on their Wii at their house just a few blocks away. But now I’m going to have to deal with two different websites for two different needs? I thought the point of having the DVDs and Streaming features all on one website was so that it was easier for consumers. This is just ridiculous and stupid. I’m never this discontented with the things I pay for or want. But now I am seriously thinking about giving up.
Well, you could waste time going to Red box or another option? It will take all of a couple minutes to set up your Netflix que for streaming and your Quickster for DVD. Your dvd’s will still come just as quick and without any thinking on your part.
I’m confused. i’ve had Netflix for almost a year and my dvd queue has grown quite long. Am i going to have to redo the whole thing now because of the website change? i can barely remember what is on the queue. It’s just even more inconvenient.
I’ve had Netflix since it started and this will not be a big deal! Everyone just needs to take a moment and get over it! You will still get your DVD’s tomorrow and be able to stream without leaving your home! It’s still far faster and cheaper than going to the movies. An extra 30 seconds to a minute online will not kill you! Your que will be easy to set up if needed. I had a few hundred in mine and if I have to set it up again I will survive.
Plain and simple here folks – I switched back to blockbuster because they charge one flat price which I pay 9.99 a month for 1 dvd out but that INCLUDES blu-rays and games and to top it off I can take it to a blockbuster store for in-store exchanges on any of the above items for FREE. If you keep up with the news on this stuff since Dish Network purchased Blockbuster back in April they have stated that streaming is coming and they have started putting blockbuster kiosks in place to compete with redbox. I wouldn’t trust a thing Mr. Hastings is saying look at his smug face he doesn’t even look sorry for anything. If anything he’s worried about the constant drop in his stocks and is trying to appease people before he goes under. Two websites to deal with is the stupidest thing I have heard of esp. for those who were already on the fence about keeping them. Way to go Netflix or Qwickster whatever you’re calling yourself these days you just gave the people more of a reason not to keep you! Perhaps one day you’ll learn people pay for convenience not hassle!
This reads like a plan to kill of DVD service without further hurting the Netflix name.
Not to sound like the crazy conspiracy theorist or anything like that, but it sounds like this was the business plan from day one. Bring people in with low-cost DVD-by-mail options, and take out competition. Add streaming to get people used to it. Spin off the DVD service with a new name that has nothing to do with Netflix, and then kill it while reaping the benefit of the lower-cost streaming model. Well done, Jerks.
Reality! DVD’s will be going the way of VHS here very shortly.
New Coke anyone?
Red, I think you’ve got it spot on.
I’ll be looking at Amazon VOD/Prime soon. May just drop Netflix on principle alone. Did the same with Blockbuster after they did us wrong on a video rental 15 years ago that we returned on time but they claimed was late and steadfastly refused to budge on.
I just found GreenCine too. Another option. Dislike their name and their color pallette (who really cares) but the rest looked reasonable.
We’ve cut the cord to subscription satellite and over a decade ago we cut off the cable TV which in our area was over priced and poor quality – bad stations, analog ghosting from channel to channel, etc.
We want to stick with Internet TV and we’d like to have more English speaking foreign TV to choose from.
With video on demand we’re watching less TV but enjoying it more. My kids are no longer influenced by junkfood ads and advertisements for more useless stuff (aka fads, toys that don’t engage their imaginations, etc).
We’re about this close -><- to turning it all off permanently and just keeping the free channels on our Roku and an occasional movie from RedBox or someplace similar.
Not sure how they plan to manage the exploration of movies, but I will certainly drop the service if it won’t let me add non-streaming movies to my DVD que.