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Netflix will no longer offer movies at home. In about three weeks, they will only offer a streaming service. If you still want to receive movies at home, you will need to join another site. It's called Quickster. Your preferences and your DVD queue will not transfer to the new site. A new account will automatically be created for you at Quickster. You will be billed separately, and you will need to go to two separate sites for streaming and DVD's. There are other changes as well. CEO Reed Hastings sent out an e-mail detailing the changes a few days ago. He had 10's of thousands of complaints at the Netflix blog within hours. The stock has plummeted, and the story is one of the biggest online right nowBefore this latest move, Netflix was my favorite company. Their stock plummeted after a price increase. I didn't have a problem with the price, although I understood those who did. It angered many people that Netflix increased its price after losing the Starz contract. It seemed unfair to many that they were being charged more money and being given less (30% less) in return. I didn't let the price change bother me, but I have a big problem with the decision to split into two companies.
One of the things I liked about Netflix was the simplicity. I could watch movies online or have them delivered to my home. Now, apparently, their CEO, Reed Hastings, has decided he's too incompetent to do that from one centralized company, so he has decided to split one of the most successful companies of all time into two companies. There goes the good will of his customers and his brand name in one fell swoop. Now customers will have to maintain two separate accounts, with two separate companies, to receive the same service. That is if they decide to continue with the company/s after their current bill cycles are complete. The decision was so foolish it left me wondering who Reed Hastings is working for? Perhaps he has struck a deal with Blockbuster? They seem to be the biggest beneficiary of this decision. (That last bit is sarcasm in case anyone thinks I'm serious.)
Now Netflix will have to market two separate companies, which is a huge expense. I think it is foolish in this economy for a company to increase its cost of doing business. It's also foolish to alienate their customers and create a vacuum that their competitors will be more than happy to fill.
One site has summed up the move very well. I hesitantly recommend this take on the Netflix debacle; it's pretty offensive and there is some strong language. Click Here. I hope you'll come back if you read that and let me know what you think about Netflix's latest decision.
UPDATE: Looks like Dish Network is the first to take advantage of Netflix's decision. They're going to do what Netflix used to do, and it's only going to be $10! Yay! Netflix's old price. Click Here for Details.
20 comments:
We're looking to get something other than Netflix. We've been with them a long time. I watched so many DVDs when I was pregnant and just had my son. It was great. I have no idea what they're thinking!
Thanks Christine. I'm looking for an alternative too. So far I haven't found one that does what Netflix used to do, but I know some bright CEO (somewhere) will meet the demand Reed Hastings just created. When that person does, I'm switching. I hate Netflix now, and I used to love it.
I haven't even used netflix yet, but I have lots of friends who love it. Sounds like they made a pretty stupid decision. I won't be using it now. :(
Thanks Abby. Netflix was great. I don't know what they were thinking when they did this, but they must have been stoned at the time. They had 10's of thousands of complaints within 24 hours at their blog after they announced the changes. Some of the comments are pretty clever.
Didn't realize they were splitting the company. I read why they were raising the rates and it all goes back to the movie studios now charging four times as much for streamlined movies.
And I guess I'm the only one not complaining. Unless the rate goes past fifty bucks a month, I'm not living without my NetFlix. Not until I reach the end. Which may be soon...
Hi Alex, I wonder if you'll feel the same way when you find out what they've done. I've posted it at your blog, but here it is again:
Netflix will no longer offer movies at home. They are only offering a streaming service now. (Actually it goes into effect in about 3 weeks.) If you still want to receive movies at home, you need to join another site. It is called Quickster. Your preferences and your DVD queue will not transfer to the new site. A new account will automatically be created for you at Quickster. You will be billed separately. And you will need to go to two separate sites for streaming and DVD's. There are other changes as well. Reed Hastings sent out an e-mail detailing the changes a few days ago. He had 10's of thousands of complaints at the Netflix blog within hours. The stock has plummeted, and the story is one of the biggest online right now.
The decision is so odd. They apparently feel as if the DVD market is going to dry up. I think I read that only one out of ten of their customers uses the DVD delivery method, but that makes so little sense. Their library of instant view movies is very limited. If I want to watch anything that's been in the theaters lately, I have to order the DVD. I like the streaming video, but the choices are so lame (although I have been enjoying a lot of British television series lately).
I'll probably stay with Quickster. I have no choice, but what a mess that guy created.
I think it's odd too... and stupid. The streaming movies are very limited. I love the British TV series, too, especially Inspector Lewis, but that's limited as well and some of them I can only watch on DVD. Plus now that they're losing Starz, the selection is going to get even worse. I use both services equally, and I really hate the changes. Hopefully, some new company will step forward and fill the void that Hastings created. I would have stuck with them through almost anything, but this was going too far even for me.
Think of the expense in logo design alone! New site, letterhead, business cards, etc.
Good points... I imagine their new expenses will eventually cause another price hike... though Hastings claims he's done with that. I doubt Quickster will ever rival the success of Netflix. In fact, I doubt Netflix 2.0 will ever rival the success of Netflix 1.0.
I'm not in US so I've never had Netlif but I know that many people love it and use it a lot.
People outside US are forced to use Torrents in order to get to the latest films and shows
I don't really care. So the charges will be split on my bill--what does that matter? And I've wanted separate queues for streaming and at home for awhile--it would be a lot easier.
And since Qwikster is going to offer games--even better!
Perhaps with the change, Netflix will be better able to woo back Starz and other companies nervous about allowing their films to be streamed.
Hi DEZMOND, I know there are safe torrent sites, but there's always the danger of viruses.
Heidi, Netflix stocks have dropped from about $300 a share to $140 and expected to drop lower. So how is that okay? Games are fine, but they didn't need a separate site for that. They could have been integrated into Netflix. It's a ridiculous move from a business stand point, and I have a problem with being billed twice. I use a debit card, and I'm charged for each transaction. It just doubled my billing expenses for the same service. And I doubt Starz is coming back, that WAS a streaming contract, so how will setting up a separate site for DVD's woo them back? Netflix will not stream Starz movies anymore because they couldn't agree on a price. Having a separate account for DVD's won't change that.
I didn't find it offensive at all - it was very clever! And it made me see things in a totally different light. Now I want to change my vote. I don't think I'm okay with it anymore. I agree that they are shooting themselves in the foot! While I'm paying the money and putting up with it for now, if something pops up that fills my needs from a competitor, I'll be quick to jump ship. Love that sandwich analogy!
Hi Jennie, I'm glad you weren't offended. I thought it was pretty clever too, but I could see where some people would be offended by it. I'm still with them for now, but I am waiting for a competitor to step in and offer what Netflix used to offer. I'm semi-retired and my income is pretty fixed, so paying twice for my billing fees is a big deal for me. I'm budgeting like crazy as it is.
Looks like Dish Network is the first to take advantage of Netflix's decision. They're going to do what Netflix used to do, and it's only going to be $10! Yay! Netflix's old price. http://www.chron.com/business/article/Dish-Network-taking-on-Netflix-2186147.php
I switched to Netflix Instant when they raised the prices. It's not worth it, not when I can go to Red Box and rent new movies for a dollar. With instant I get to watch all my favorite shows, and with Direct TV I get a whole lot more. So yup, they shot their foot a few times. And now with their introduction of renting out video games...who cares. :)
I'm with you Laila. I was planning to look into Red Box, so I'm glad you explained how it works. I need to check what it is that I see at 7/11. It looks like a movie vending machine. I suspect it's Red Box, but I have no idea. I don't care about the games either. And I doubt anyone renting games from them would have cared if the company had the word 'flix' in it.
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