Netflix Spins DVD Business Off By Creating Qwikster, Launches Games-By-Mail Too - HotHardware
Netflix Spins DVD Business Off By Creating Qwikster, Launches Games-By-Mail Too

Netflix Spins DVD Business Off By Creating Qwikster, Launches Games-By-Mail Too

If you're waking up this morning to a feeling that something may have changed overnight, you'd be right. Netflix CEO Reed Hastings decided that now would be a great time to start a new business. So he did. It's called Qwikster, and it's a new company by Netflix. Excited yet? Hold your horses. After upping the overall price on their offerings earlier in the year, Netflix has now spun their DVD-by-mail business off entirely, hence, the newly formed Qwikster. As of today, "Netflix" refers only to the streaming side of things. "Quickster" refers to the DVD-by-mail side of things. And the fun is just getting started.


In a lengthy blog post penned this evening on The Official Netflix Blog, Reed stated that Andy Rendich, who has been working on our DVD service for 12 years, and leading it for the last 4 years, will be the CEO of Qwikster. Qwikster isn't quite ready for launch yet, but it's coming. "In a few weeks" according to Reed.  It is merely a renamed version of the Netflix DVD website, but with the addition of video games. That's right, video games. In other words, GameFly just gained a huge competitor. And that's a market where rivals seem needed; GameFly's rates are what we would consider "delicious," and hopefully a little pressure from the folks at Netflix will put them in their place, so to speak.


It's clear that physical DVD rentals aren't going to be a driving force in the market for as long as movie streaming will be. Streaming is just getting started. There are hundreds of countries out there that Netflix can still launch in. The beginning is just beginning, in a way. Will Qwikster have a future? Probably, at least for a while. Pricing isn't changing for folks who want to just keep things as-is, but there will be two different charges to their credit card now, and they will have to deal with separate movie queues and rating sections. Are you willing to put up with the changes? Do you think it's the right think for Netflix in the long haul?
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First off, more competition is good & will hopefully bring down prices. At first it may not but maybe as the economic downturn gets worse, then they will have to compete harder with each other. Secondly, they may be just trying to cover up their bad image for a while by starting this new company. Let's face it, not many people are really going to study up on these articles or be well informed on the necessary, but will be more likely to talk about the mundane life styles of the rich,etc.

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So now they have two separate companies that they have to pay CEOs for... Great idea to add the games and compete with GameFly but I am not sure how I feel about the separation of the streaming vs by mail movies.

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when optical media dies/evolves the streaming will still be afloat. Sounds to me like Reed is dumping the "future dead weight" on Rendich.

I am glad they are offering games, I have netflix (but not gamefly) and the service has been good.

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It will be interesting to see what their collection of games holds. I was using Gamefly myself for a while, but since their closest shipping center to me was pretty far away, it would take over a week from the time I sent a game back, till I got my new one. Price wasn't good enough for that.

As far as splitting the dvd/instant side up?? Guess we will have to see, hoping they aren't going to try and raise the prices on either in the disguise of different companies now.

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We cancelled our Netflix membership when the price change was announced, so this doesn't affect us at all. Red Box is only minutes away.

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They're idiots,........

They're not factoring in the rising costs that we're (the customers) being forced to pay for streaming data to our homes and devices. They're betting the farm on Data streaming while providers are sticking a gun to our heads with sharply rising costs and Data limits that discourage streaming movies. 
So, in a nutshell, they're embracing what will cost us too much and not provide us with enough data to actually ~use~ their service. 
All this move is, is trying to throw a spin onto our 'pissed off' train of thought towards them. It will not work.
Consider that they had one of the very best, low cost solutions for home users not long ago. Most of us customers just loved the overall service and the occasional streaming movie or two. Some didn't use the DVD service, some didn't stream movies either. But we had it all for a decent price. Then they got to be greedy and through their ill thought actions, they screwed up their winning business model beyond repair. Now they're just flogging a dead horse.

The board of Netflix should be fired.

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realneil:
The board of Netflix should be fired.

I agree were they really losing that much money on those users that were utilizing both services to their maximum potential.

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Ya I really don't like this change =/

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I'm dropping all of their services at the end of the month.

I'm not gonna dance to their tune anymore. They say that the loudest voice we have speaks through our wallets.

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I don't know if this is a good idea or not but focusing Netflix on the streaming side of media seems to be a good idea; as this company will allow them to focus soley on the DVD side of business; plus even though some people seem to be against the idea; it does give GameFly competition and competition does lead to innovation. (though at sometimes I did think that GameFly was a part of NetFlix.)

In any case, I wish both companies well as they both go their seperate ways.

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Cool, hopefully they'll integrate Qwikster memberships or offer special prices to existing Netflix users since they are taking away a service that was included in what they originally signed up for

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