Netflix Does an About Face, DVDs to Stay on

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News Posted: Mon, Oct 10 2011 3:08 PM
Netflix has done so many things right for so long that it’s baffling how badly the company has been bumbling around as of late.

First, Netflix announced new pricing structures in July that were terribly unpopular; instead of paying under $10 a month for 2-at-a-time DVDs and unlimited streaming, Netflix split DVD and streaming. Now, users have to pay $7.99 a month for one DVD out at a time and another $7.99 a month for unlimited streaming. If users want two DVDs at a time, it’s $11.99. In other words, Netflix made the pricing structure both more complicated and more expensive--two things consumers really, really hate--in one fell swoop.

The backlash was so bad that Blockbuster, which hasn’t been relevant in years and was essentially on a death watch, suddenly starting looking good with its own by-mail and streaming service. Indeed, the company went on a brief blitzkrieg campaign to try and get Netflix users to switch, specifically citing the unpopular Netflix pricing changes. (All that likely did, however, was delay the inevitable for Blockbuster.)

If that wasn’t enough, a few short weeks ago, Netflix announced that it would split into two separate websites. The streaming-only site would remain, and the DVD shipping site would the all-new Although Qwikster was basically still the same thing as the old Netflix, is was also slated to have its own CEO, so it was kind of a new company but kind of not a new company at all.

Reading the announcement, you could hear Norm Macdonald saying “Wait, what?!” in your head.

The Qwikster move was also deeply unpopular with consumers, and it rattled quite a few cages. The Netflix blog post announcing the change currently has almost 28,000 comments, and let’s just say that most of them aren’t enthusiastic.

Now, in the wake of (additional) severe backlash from customers, Netflix sent out an email to customers today announcing that Netflix would remain just one site. There will be no Qwikster. In fact, already reroutes to

Here is the email:

Although it’s safe to say that the vast majority of Netflix customers are relieved that all of Netflix’s services will remain under one roof, there remains one large unanswered question: what about the games?

One enticing feature of Qwikster was the promise of a video game rental service akin to That important was generally glossed over by all the unhappiness over the one-now-two websites, but the idea of Netflix offering unlimited games by mail is enticing.

Today’s email from Netflix says nothing about games, leaving us to wonder if Netflix is ditching games altogether or if we can expect another apologetic email from Netflix CEO Reed Hastings in the coming days, explaining why the Netflix team neglected to mention anything about it.
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AKwyn replied on Mon, Oct 10 2011 5:16 PM

So I'm like one of the people who thought the Quikster website was a good move... Eh, it didn't matter to me at the most; I thought there was a business plan in splitting the two so one can go for a highly lucrative market and one can go for an increasingly niche market; I mean everything is going towards the internet right, DVD's were dying out so it made sense right? But it seems like the people who complained about the whole price change and Quikster are now getting their wish.

I'm guessing this must of been one of Netflix's most hectic times, but I respect their decision. Even if it means Dish Network owned "Blockbuster" is not getting a hand up on Netflix anymore.


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realneil replied on Mon, Oct 10 2011 9:37 PM

I thought that it Suct big time and I'm glad that their investors slapped the board around a little. They think too much of themselves.

The Price increase stays the same by the way. For now,.....

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gazd1 replied on Tue, Oct 11 2011 6:14 AM

We'll see in the end if it will help Netflix. They'll end up going up some how sooner than later in charges & not only that, but they again guage the market to see if they have made the right decision.

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