What Do You Think of Splitting Netflix Into Two Companies?

Thanks to FearNo1 for the suggestion.

Comments

[T]

The split sucks. Bad decision. What makes it so awful is no integration. How does the CEO try to give a heartfelt apology about jacking up prices and empathising with the consumer, and then announce that they're splitting the site up and making it more annoying for anyone with both streaming and by mail?

I don't care about the name change, but a separate website where I'll have to rate everything on two sites and check both sites for availability is ridiculous. Why couldn't they, if they wanted a simpler website, had some version of two buttons in the top left of the site, one that said "instant" and the other that said "by mail" and you could click one to go back and forth between sites. Then each "site" could be simpler and only have content for that ability, but also would still offer integration.

So, in other words, netflix followed a too-high price increase with splitting their company up and making everything much less integrated.

[SPLG]

I think the name choice is curious.

The great thing about the Netflix DVD business is... convenience. It's not quick. It never has been. Streaming is quick. Running to the video store, while not instantaneous, was always quicker than Netflix.

The genius of Netflix was how easy and convenient it was. No late fees, the next DVDs in your queue arrive automatically...

How did they end up choosing a name like Qwikster? I'm not trying to say coming up with a new brand name is easy - it would be virtually impossible to come up with anything that people will embrace. But I really don't understand the underlying message of the brand name Qwikster.

[AtomicBuffalo]

The only way this makes sense is if Netflix can deliver most of the content that people get via DVD today, via streaming, at a similar price.

But if they were able to do that, they should have held their split announcement until then.

And we know they're not able to do that, because the studios want PPV money -- and in a world that includes PPV streaming, cable, and premium channels, the studios have no incentive to give Netflix anything.

So thanks, Netflix, for killing customer convenience for no reason except short-term shareholder gain. Wait, it's trading at 143.75? Oops.

[Inkyfever]

All I can think of is goodbye to DVDs. NF has long wanted to stream only and this is positioning themselves to do so. With the US postal service in trouble, it could be happening sooner than later.

[Liz Shanks]

I think this is a bad idea. I signed up with Netflix beecause of the easy "One Website" to order movies and rating them. Now they want me to go to another website just to rent movies and rent them. Does this mean that the rates may be different cause of the other company? I don't really watch the Unlimited movies online so I may be discontinueing my account if this "New Idea" of theirs is not easy has it has been for years that I've been a member. Netflix please stay on one site not combine with a another site!

[Edward R Murrow]

The employees that go with the DVD spin-off are safe while the employees that go with the streaming will have it pretty rough.

[Andrewdcaudle]

Splitting into two companies is a wise business decision. The failure is not integrating the two websites and not sharing things like ratings.

[Tim Harwick]

So let me get this straight. Netflix wants more integration with Facebook, but NONE with Qwikster, their own bloody company??

[Shaun Stuart]

As my friend says, the lack of integration means Netflix has gone from "how great this is!" to "what a pain this is!" I'm awaiting the Blockbuster streaming announcement on Friday and will likely switch then. (I'm already a Dish subscriber.) Starting the search for an app to export my Netflix queue...

[Joey Crocker]

I believe its so they can sell off the dvd division.

[D B]

Dear Netflix Customer,

We are sorry that we recently shot ourselves in the foot with our recent decision. To show that we do not discriminate between the left foot or the right foot, we shall now proceed to shoot ourselves in the other foot.

Sincerely,
Netflix

[Tekneek]

At first this sounded like no big deal, but the more I read and think about it, the worse it sounds. Not being integrated is workable for me, but only if they keep the histories intact. I want the same exact experience, down to all of the ratings, rental history, etc.

This whole thing smells of Netflix inconveniencing its customers for its own gain. Have to see how they make it work, because it smells like a major customer service blunder for an organization that has been known for being a great one. Those of you accustomed to doing business with bad companies won't even blink, but those of us who are more selective see trouble on the horizon.

[RJM35126]

They REALLY need to find a way to integrate the 2 sites.

And the new name is really bad. Nobody knows how to spell it.

I think they must be eating mushrooms and seeing just how much value they can destroy.

LOL

Prediction: Within 18 months, streaming will be $9.99 per month and by mail customers will experience more & more throttling & long waits. And also price increases.

This two website deal, the stupid name are going to alienate a lot of the people who subscribe to both.

I am on the 3+ streaming but I can see myself throwing DVDs overboard like netflix is doing & cancelling.

Redbox has a subscription opportunity...if they take it.

Offer 1 at a time unlimited plans for a price rather than $1 per movie per night.

My biggest problem with redbox is extra 2 mile trips to return them.

An unlimited plan would solve that if priced reasonably.

[Lethargicj]

You mean I have to ignore your meaningless movie ratings on two different websites now? OH THE HUMANITY!!!! NOOOOOOOO!! OH MY GOD!!! WILL THIS NIGHTMARE EVER END!?!?!?!

Every single person who complains about how ungodly terrible it is to have to use two different website should be forced into a tour of duty in Afghanistan. You non-contributing zeros and your "problems" are a joke.

[Tekneek]

Wow. Indeed. Paying customers who are unhappy about changes to a service should go to a combat zone. Your logic is mesmerizing.

[Lamont]

"The Quickster is a superhero who is only seen in the episode: Mermaid Man and Barnacle Boy V. He is part of The International Justice League of Super Acquaintances. He is briefly SpongeBob. He (known from his name) has the ability to run extremely fast, such as running to a mountain so fast you can't see him do it. His costume is white with a red lightning bolt on it." - from SpongePedia

Besides being a silly name its impossible to spell right. I read it as quikster.com-- uh uh.

Once the ISP's see the volume of traffic being driven onto NF streaming, especially if content does improve, then the price hikes will also come from the ISP's as well as NF. So there will be double-barreled price hikes ahead.

[UltimateOutsider]

I'm not sure I've ever seen a company do so much to alienate its customers in such a short time. They have been actively de-featuring the web site for the past year, and splitting their catalog into two libraries will be a rather large hassle for users like me who often go to Netflix.com, thinking, "Which movies in my DVD queue are available for instant viewing tonight?"

I'll now have to do a LOT more work cross-referencing between sites. (My queue is consistently over 450 titles.)

For the first time in 8 years as a Netflix subscriber, I'm seriously considering alternatives. Blockbuster can make a KILLING off jilted Netflixers if they manage to integrate all of the queue and site features that Netflix has cut.

[Marcus]

The great thing about the internet is helmet heads have a way to safely bolster their manhood by ridiculing people complaining on an open & (most importantly) anonymous forum. Unfortunately, their absurdity is difficult for them to hide. Yes, yes, let's send anyone who disagrees with Netflix to a combat zone. What a tool.

[Ryan Redfield]

I'm dropping the DVD service. Separate websites? No integration between instant and DVD queue? Why have would I want two plans? Redbox is gonna get an increase of my business.

[Rocketboy_X]

Smart... very smart. Let each company grow by itself, and conversely, fail by itself.

[Jonathan]

You know, I used to really talk up Netflix to everyone I knew. Boy has that changed. I don't speak to anyone about Netflix anymore. I'm pretty much embarrassed to be customer now. Beyond the US government, I can't imagine a worse mismanaging job... I'd be sad if I wasn't so angry.

[Traye Lynch]

Very very smart. I wonder if those yelling realize that part of the problem coming to terms with content partners on streaming titles was the content partners refused any other deal other then them getting x number of dollars per user per title, this included those who had streaming available to them but didnt use it. They just instantly cut this user base in half allowing them to position them self in a place they can get popular titles and keep costs low to the end user. Allowing them to not only keep current content ie starz, but others as well.

[Lance Moody]

It's interesting that as things got better and better for Netflux, things got worse and worse for us.

Lance

[Minimalist2001]

According to Netflix's own data, 50% of their customers currently pay for streaming and DVD's. How is making it difficult for the customers responsible for the majority of your revenue a wise business decision? And how does pushing DVD's into a ghetto help you build a better streaming selection when people will see more clearly how bad the selection is right now?

Netflix seems hellbent on a course for destroying whatever marketshare and mindshare they have built over the last 10 years. The stock has lost half its value just over the last two months. So not only are the customers angry, the stockholders are too.

[Jreed]

Too bad none of the 1,792 of you had anything to do with the decision.

[Gobotron]

This is so dumb. It's as if Amazon.com had divided into separate, differently-named websites each time it started selling or offering something new.

[ScottZ]

It is quite obvious Netflix is selling one or both of their businesses.

[Account Deleted]

While the separation of the two sides of the Netflix operation is definitely an annoying hassle, here's an article that sheds a little light on the economics behind the decision that may have made it inevitable if NF was going to continue to move forward.

http://abovethecrowd.com/2011/09/18/understanding-why-netflix-changed-pricing/

Remember that NF and any viable competitors in the digital subscription market are, in a way, doing a favor for anyone who is currently stuck in a billing straitjacket by their cable company. With cable, you're paying a lot of money predominantly for content that you not only aren't watching, but actively despise. At least Netflix doesn't charge over $100 a month for the privilege of not watching Toddlers & Tiaras and Jerseylicious.

[Tekneek]

I hope they are about to hit a home run with this split, else they are going to have burned up a lot of goodwill. Netflix had built up a brand based on great customer service, but has been taking steps that weaken their position. One of the big sins of customer service is choosing to make things easier for you while making it harder for your customers.

Oddly enough, they are quite vulnerable right now. Dish Network has deep enough pockets to give Blockbuster a strong push. Content providers are looking for an up-and-comer to throw their weight behind, the same way they once did with Netflix. Seems a bad time to choose to disrupt your customer experience.

[D]

this will make dish network and directv smile
knowing that netflix will soon be history

[Rocketboy_X]

Face it, everyone got streaming for free. So what, is streaming not worth anything to you? The people who work strictly on the streaming side of things don't have any value to their jobs?

But the second streaming started costing money, the naysayers ran around posting to every blog that they could find that their life is ruined thanks to Netflix.

[Tekneek]

Perhaps... If streaming was going to get more expensive, it is a good thing that they split up the pricing so that people could choose to pay for it or not, rather than bake it all in the way cable/satellite treats you. The bad customer service move is splitting up the websites, with no integration, along with the rumor that we may be losing all the ratings, reviews, etc. That's a bad customer service move, no matter what business reason necessitated the change.

[Justin Hinkle]

Qwikster is going to be (HAS TO BE right?) sold. No other reason for a separate website with zero integration.

[Travis]

I was on the fence after the price hike on keeping both services, but they made my decision easy by having the business split. I guess I will become a Qwikster only customer.

[Lonny]

So..... I keep reading about how many people are flocking to Redbox! I cannot believe there is another DVD service out there cheaper AND more convenient than Netflix. I have to check this out... I saw one somewhere..... where was it? Oh yeah! Super Wally World! I did not get two feet in the door before I decided Redbox was not for me. There was something about getting in the back of a line 3 or 4 deep, while another family debated about what movie to get for the night. I knew this was going to take at least 20 minutes of my time not only to rent the movie, but another 20 minutes the following night to return it. I can only imagine the late fees i would be paying trying to avoid that pain in the butt. Nooooooo far better for me to stay away from Wally World all together. $1 movies will no doubt cost me alot more in the long run than Netflix. Who can go to Walmart and NOT spend $20 on crap you don't need? Honey..... pick up some milk while you are there, mwhaaaa love you.

[Lonny]

I will be at home organizing my Quickster, qwikster, flickster, quickflix, whatever Queue. If putting up with the pain in the ass of being on two separate plans gets better content on streaming..... i am all for it.

[Dave1812]

Netflix has lost it's mojo. I used to have great respect for how NF was run and how it treated us customers. I've lost that respect and can foresee a day when I switch to some other service that comes along to fill the gap that NF has created with it's anti-consumer, recent actions. What a shame! Losing Starz was a major blow, too, btw...

[Karen Lee]

For my buck, losing Starz was ok. The quality of those transfers for streaming stunk like a skunk.

Streaming for me was always difficult on my ISP, so unless the quality of the stream was really good, like 24 was, they were only marginally watchable.

When they decided to charge for their non quality instant catalog I dropped it and went DVD only.

If they muck around too much with the DVD side of the equation I can drop that as well.

[Henchman-24]

...and boom goes the dynamite

I saw the blog video. I read the email. I changed my Netflix Account Status from HOLD to CANCEL this morning.

WTF are those Netflix guys smoking in the Los Gatos executive conference room?

Peace, out (way out)
formally known here as @dAVe

[Ericchatterjee]

Someone already posted that nobody looked it up in UrbanDictionary.

But today I saw this article that reads like a headline from The Onion

Twitter name owned by Pot Smoking Elmo!