Netflix cancels plans to spin off disc mailing business as Qwikster
In a post at the company's official blog, Netflix CEO Reed Hastings said that it was "clear" that customers didn't want to have their streaming and disc-based queues listed on separate websites. As a result, the company will retain one website, one account and one password for its customers.
"In other words, no Qwikster," Hastings wrote. The company's price hikes that went into effect in July will, however, remain.
The decision to ax Qwikster before it even launched is the second major change of heart from the company in recent weeks. Netflix announced last month that it would spin off its DVD and Blu-ray mailing service as Qwikster, a change initially made in response to subscriber backlash over higher prices for rentals of physical discs.
At the time, Hastings said it was apparent that streaming and DVD by mail were becoming two very different businesses with different cost structures. He said the companies needed to be marketed differently and would operate independently.
The change would have positioned Netflix as a more direct competitor to Apple and iTunes, which offers digital-only service for movie rentals and purchasing of TV shows. While Netflix is exclusively a rental service, movie rentals are offered on iTunes, but Apple is largely focused on purchases.
Apple attempted to take a larger share of the rental business when it relaunched its Apple TV set top box in late 2010 with new 99-cent TV show rentals. But the company abandoned that strategy in August, noting that customers "overwhelmingly" preferred buying TV shows over renting them.
Netflix is the dominant player in digital video delivery in America, with a study from the NPD Group pin March showing its Instant Watch service represents 61 percent of all paid digital video viewings. Apple, by comparison, took just 4 percent of domestic streaming and downloadable video content.
While Netflix dominates the online rental market, Apple is the undisputed leader in terms of digital content sales — a market where Netflix does not compete. A study released in February showed that the iTunes Movie Store represented 64.5 percent of digital video sales.
43 Comments
I just cancelled Netflix because it seems like they are mostly just B-movies and cheap knock-offs nowadays. I used to watch Netflix far more than cable. Are there any good alternative video streaming streaming services?
I just cancelled Netflix because it seems like they are mostly just B-movies and cheap knock-offs nowadays. I used to watch Netflix far more than cable. Are there any good alternative video streaming streaming services?
I think you have several services now that will be roughly the same in terms of content quality -- Netflix, Hulu Plus, and Amazon Prime. Some newer titles, tons of older titles. It really depends on which service's content set most closely matches your interests. The only thing Netflix doesn't offer yet is a pay-per-view model, but you can supplement that with Blockbuster's website.
I'm glad they came to their senses. This would have been the worst marketing mistake ever. Netflix is such an established brand, everyone knows Netflix.
Getting the regular consumer to differentiate between streaming for Netflix and Qwikster for DVD's would have been so confusing. Not the mention the fact separate queue's for both...
Jesus, Netflix needs a new CEO.
I didn't like the decision to split the company in two, but if they had really thought this shit through before announcing the split and there was a good, compelling reason to split the two services, they should follow through on that, whether their customers like it or not.
Instead, they look like idiots, and their customers don't know what the hell to expect next.
(That said, I cancelled my DVD service when they announced the split and added it back once they announced the cancellation of the split, because I still think it's a fantastic service for the price? even if it's 60% higher than I was paying three months ago. So I'm an idiot, too.)
I think you have several services now that will be roughly the same in terms of content quality -- Netflix, Hulu Plus, and Amazon Prime. Some newer titles, tons of older titles. It really depends on which service's content set most closely matches your interests. The only thing Netflix doesn't offer yet is a pay-per-view model, but you can supplement that with Blockbuster's website.
I prefer Hulu+ anytime these day since it's the only online provider that provided most captioned shows. Until then, I'm sticking to it unless Apple brings up the subscription of movies then I'm sold.