Netflix kills plan to split off DVD rentals

[OhioChick]

Source: AP

Posted: 8:32 AM

NEW YORK - Netflix is abandoning its widely panned decision to separate its DVD-by-mail and Internet streaming services.

CEO Reed Hastings says in a Monday blog post that subscribers will be able to use both services under one account and one password.

Less than a month ago, Netflix Inc. said it would split the DVD rental business off onto a new website, to be called Qwikster.

Subscribers howled at the move, saying they saw Netflix as a destination for movies in general and didn't want to manage two accounts.




Read more: http://www.newsnet5.com/dpp/news/science_tech/netflix-kills-plan-to-split-off-dvd-rentals

[trumad]

1. Wow...

My 14 year old can run this business better than their top Execs.

[exboyfil]

5. Amazing how quickly the mighty have fallen

Netflix and Redbox effectively killed Blockbuster (who had earlier polished off the ma and pa rental places).

I always viewed the DVD rental with streaming as a synergistic advantage that would eventually fade away as all content became streamed (it really makes no sense sending digital files through the mail when they can be sent over the internet). The only reason now they are not opened up to streaming is that contracts that exist with the content providers.

More to the point why don't the content providers go direct and cut out the middle man. I see that as potentially the next big move in the market.

[zalinda]

10. There are still a lot of people who either go to the library

to use the computer, use the computer at work, or have dial up. In all those situations, streaming is not possible.

zalinda

[razorman]

14. Library? Isn't that one of those ancient, forbidden temples that Indiana Jones sneaks into?

[awoke_in_2003]

15. no, they are bastions of knowledge...

that don't inundate you with millions of pop up ads like the internet does.

[SomeGuyInEagan]

21. Nope. Use is increasing nationally for library programming.

http://lrs.org/documents/fastfacts/298_Programming.pdf

And, locally, I can tell you that our multi-county/multi-city systems are adding building hours in addition to available electronic reserves, remote locker-style reserve pick-up stations and more physical items to their inventories. It would not surprise me at all if they bring back the old book-mobiles.

[demigoddess]

27. our library recently brought back book mobiles.

think it is to service those who cannot get to the libraries due to cut backs in bus service or loss of car.

[SharonAnn]

38. Thanks for the link. We're trying to get funding for a library here

and people are saying "Aren't public libraries outdated?"

Our experience is exactly the opposite of shrinking. We're getting more and more users, demand for more and more services, and more demand for computer access. So we've way outgrown our "temporary" storefront.

I appreciate the link because it gives me reputable information to use in fund-raising requests.

[prairierose]

16. My library has streaming videos...

as well as ebooks and downloadable audiobooks. They are mostly documentaries, PBS shows and older movies. My library is great. I love it. And when I am really bored, I can go the building and actually borrow a real, paper book.
:bounce: :bounce: :bounce: :bounce:

[obxhead]

22. We can't possibly stream everything.

There's simply not enough bandwidth to convert all of our DVD viewing to streaming. As it is Comcast and others are working on putting limits on streaming due to the massive bandwidth usage of current video streaming use.

[CatholicEdHead]

31. If the limits are raised we can

I expect some deals to be worked out with them in the future to raise the caps to allow this to happen in some big deal between movie studios and cable/internet providers. If Comcast et al get a small bite of the stream then then can let it through and probably not count it against your cap.

[obxhead]

35. It's not the limits that would stop it.

The problem is the actual global networks can't handle the load. Our bandwidth usage is far outpacing the physical availability.

[JDPriestly]

30. The management costs would be too great if you had a bunch of providers duplicating

what Netflix provides in one package.

We, for instance, watch a lot of foreign-language films. Netflix provides them. It would be hard for the individual companies or even their US representatives to handle the trickle of orders for viewing their films.

[PatrynXX]

33. amazing how many movies they don't have on dvd/bd

Excalibur on BD was horrid. as in hey netflix why don't you have the BD.

qwikster is hard to spell too. sure I'm used to Kwik Trip (Kwik Star in Iowa) stupid Qwik Trip X_X

bout time for a little good news. canceled their streaming. ain't nothing on. except dirty jobs. Brother canceled it altogether

[hedgehog]

2. Glad to know that popular action can change what really matters.

[heliarc]

9. The only thing we export anymore... nt

[Ron Green]

3. Good. I don't want much of what can be streamed anyway.

Classic, indie and foreign films are mostly on disc; the rest of it is mighty like teevee.

[Pharaoh]

4. yeah but

did they dump the price doubling?

[latebloomer]

6. my thought as well

and I'm SURE they haven't.

[Lance_Boyle]

7. Nope.

There was never a plan to actually split the services in any sense except as line items on your bill. It was just cover for the cash grab.

[truebrit71]

12. Nope...still double what it was....another message mis-read by Corporate America..

...it wasn't that they were splitting the services apart, it was that they wanted to charge DOUBLE what they had been charging for the same thing...

[Historic NY]

8. Why even bother with them............its been a sham to get more money.

[Bluenorthwest]

11. They have much gusto for a company that does not create what

it sells nor control the system with which it delivers what they sell. At the most simplistic level, Netflix is a delivery service that wants to be paid as if they created the content.

[shanti]

13. hah!

apparently they listened! we do have power over the pocketbook :)

[drm604]

17. So there's no option for people who don't want to pay for both?

Some people may only want to stream. Some may not be able to stream. Why should those people have to pay for both?

[Crazy Dave]

18. Yes

They have several plans. Streaming or home delivery or both. The plan was to make them into two separate business and then possibly sell off the home delivery one.

[Scout]

20. everyone WAS paying for both, before the changes

now you can choose either/or and also choose stick with both, if you want both.

[Atypical Liberal]

32. Except now it costs 60% more for both.

everyone WAS paying for both, before the changes now you can choose either/or and also choose stick with both, if you want both.

Except now, people are paying up to 60% more for the same service of both streaming and DVD rental.

Netflix's biggest screw-up here was not putting the blame squarely where it belongs - on the movie studios who are demanding a bigger cut.

[Codeine]

26. That's exactly what they changed to. nt

[SoapBox]

19. ...it was stupid.

Another DUMB idea by Millionaire Management.

Next.

[ChromeFoundry]

23. Breaking: Netflix kills off DVD-Delivery and Internet-Streaming Services

New focus will be exclusively in formal apologies to former customers.

In other news, Netflix CEO, Reed Hastings, discovers the Sun after removed his head from his own ass.

[boppers]

34. ...

:rofl:

[They_Live]

24. Hey wait a second

What about Game Rentals? That was part of the Qwikster deal. Are we going to be able to rent games or not?

[Scout]

25. i've got no problem with their changes.....

my price went down since i now do DVD only, so i don't have to pay for streaming that i never used.

[demigoddess]

28. I went with DVD only because they don't have what I like most

on streaming. But I applaud their ability to listen to their customers. Many companies have executives that don't even hear what their customers say. I wish homegrocer.com had been as smart and customer oriented.

[JDPriestly]

29. Good news1

[JNelson6563]

36. Marketing 101

The easier and more convenient a service is to use, the more likely it will be used by a consumer.

Why they complicated the situation on top of the price increase I will never know. Don't they have anyone there who has any knowledge of marketing? That decision to split, it reminds me of a situaiton where the head honcho throws out an idea (a bad one) but everyone is so intimidated they simply go along as if it were the best idea ever.

Julie

[panzerfaust]

37. NetFlix is, of course, keeping the imposed 60% price increase

Gee ... wonder if that ??