Netflix Goes Bold and Rebrands DVD Business 'Qwikster'

Is it really that difficult to keep both services under one name/website? I fail to see how any of this will be a step in the right direction. A major inconvenience to subscribers that want both services as well as separate rating systems?

It's pretty clear to me that Netflix needs a new CEO cuz this one's been sucking on a crack pipe for too long. How could you possibly imagine abandoning the Netflix brand? I guess if they expect the DVD mailer side to fail completely, it'll have less effect on the streaming service and not pull it down the drain with it.

Just another case of a CEO who is grossly overpaid, under qualified and is more concerned about putting his imprint on the company than actually doing the best thing for the company and its customers.!

splitting the services to two websites has to be the most retarded thing they could do. Before I had a single linked profile for movies I've watched and rated. It suggested movies based on my instant and DVD rental history. It is like they are trying to drive away customers. I can sorta understand the internal division and the increased rates, but this is just stupid. I'm seriously considering alternatives to netflix, where before all these announcements I was content to give them my money.

The only reason why guys like this have a job is NOT because of qualifications or performance but because they are part of the old boy network of "connections".
Reminds me of that other recent genius that HP hired, Leo, the lame o lion Apotheker .

I think there's more to this than what's being told. Companies often split like this to minimize liability. If one company gets sued, goes bankrupt, etc., the other company isn't phased by it. I think Netflix sees their physical disc business as being at-risk. They're spinning it off to a different company with a new name and offering games which they easily could have in the past. It's amazing how fast this company went from having almost Apple-like status to having almost Blockbuster-like status.

Splitting the business into two would make sense if it was a precursor to selling one of them off.

Or getting out of the DVD rental business completely?

What this CEO really just said was this: "We are sorry you were or are upset over our increasing fees by 40%. We don't like negative energy and will punish you for it. We are keeping those higher rates and now will split up DVD by mail and streaming into two different brands and sites. You will be charged separately by both. You will load your queue on both. You want to complain some more? Let me think of what else I can do to show you who's boss. Puck off."

Wow, this is the stupidest thing they could have done. So now when I want movies I need to flip-flop between sites just to see if Netflix has it on instant or not. This actually makes me furious. What the Hell is this dude thinking? Does corporate America just sit in offices and try to redesign things that have been successful in the past? Does this CEO even use Netflix? If this guy even used Netflix himself he would quickly see how bad this plan is. Morons.

there have been a few times... where I had a DVD in my Mail Queue, but before it had reached the top it became available for Instant Watch. I was able to take the movie off of my mail queue and watch it instantly. Will this stop working?

Goodness, taking something sweet and making it a pain in the keester.

Can Netflix management be that bad or is this CEO a double agent from Blockbuster who is intentionally bringing down Netflix to bring back Blockbuster. Who right now offers DVD service like Qwikster will be offering, but they do not charge more for blu ray or games, which Netflix and Qwikster will. But also will start offering streaming with all the content of Starz that Netflix failed to make another agreement with. So Blockbuster is looking to be the Netflix of 2009 that everyone loved, while Netflix is looking to be a horrible pile of shit.

Blockbuster on Roku that would be sweet

Split the company as many times as you like cause you lost my business with the price hike.

RedBoxHereIcome nailed it. This is a move to decrease liability. The only botch job on the move is the one Hasting admitted to (finally); should have said this outright along with the price increase. Beyond that, yeah, it's inconvenient... well except to me as I never bought streaming. However being inconvenient on our part doesn't make the move retarded on theirs. It makes sense if you really dice it down all the way. They could have renamed either side of the business but we all know the disc side is more likely to tank as distribution models evolve. Frankly both sides stand to improve as they become independently managed. As for the potential that Qwickster might end up sold, lets take a wait-and-see stance on that. Netflix's disc catalog has some odd gaps that I've noticed on their back-catalog (for example Back to the Future and Dances with Wolves hit Blu-Ray earlier this year... so where are they? And they have every Babylon 5 movie and season except season 4?). Merging with an entity like Blockbuster might patch that up. Merging with Gamefly wouldn't be too bad, either.

As for their streaming service I'm just not interested as the video quality isn't there. Kinda reminds me of low bitrate standard definition satellite. Their selection just doesn't hold me and the fact that you can't browse the selection on most devices annoys me. On the other hand I get why their selection is that way. If they pitched $300 Million at Starz and they still walked you gotta wonder how much other contract holders are getting who decide to stay. The TV industry is feeling threatened by this business model. Starz, while savvy enough to realize which way the wind is blowing, I think has an overinflated view of itself; they want to be considered a premium service within any entity they join and won't settle for less.

So both sides have their work cut out for them if they want to survive and grow, and there's no guarantee either half will. This restructure, while painful, I think will be necessary for both to do what each does best.

@shloader. I agree.

I wonder how this affects shareholders though. Once all the negative netflix coverage settles I think there might be an opportunity here.

Wonderful idea. Destroy the brand recognition you have worked for years to build. Good to hear that they will deal in games though. If you get both for the current price, that wouldn't be too bad.

This is so stupid. If only Blockbuster had a subscription based streaming I would switch over in a heartbeat, but they are also a bunch of greedy assholes with "pay per view" model.

Seriously I am tired of Netflix crap I am thinking about canceling and being done with Netflix. It was a good run but this is just bs. I might keep the streaming but only that for my wife. For movies I will either torrent or just redbox. Hell might quit netflix all in all and go to blockbuster like everyone else is saying. Can't believe netflix is shooting them selves in the foot this badly. They was awesome as a hole but to have to have them charge me twice I don't think so not today. So adios netflix. I will cancel it next month.

So "shloader" are you Mr. Hastings PR manager? LOL

Qwikster???

How about something like "Netflix DVD"...

quiter, I just quit their dvd mail part.

That's it then. I am done. I just got netflix a few months ago. It was worth it at the time. Even with the rate hike i was willing to keep the DVD only plan, and turn on streaming here and there if i felt like watching a whole tv series one month. Maybe check out blockbuster. But this is rediculous. They are going to trash my queue. Trash the name. Not copy ratings for their 12 MILLION subscribers that still use both? This is rediculous... They lost Sony, now Starz. There is not even anything on streaming unless you're looking for a mindless drivel of kids shows to shut up your children. And everything you can get on streaming you can get on DVD for the same price. Never mind streaming quality is horrible compared to bluray.

Blockbuster looked decent before, since was the same price as netflix with bluray, but now netflix is going to charge more for games, when blockbuster does that FREE and has releases sooner? They are trying to kill off their business at this point.

Quickster? Could they have come up with a stupider name? Quickflix would have been a better choice, if the whole stupid idea was a must in the first place.

The bottom line is that Netflix had something unique with DVD & streaming all in the same place for one great price. Now they are just like everyone else, so why would I ever what to use them? Now it is all about whoever is the cheapest.

Then they pick a name like "Qwikster" Not to be Confused With: Quixtar, QuickStar, Kwikster, Quickster, Kwik Star, Quik-Star, or Kickstar. WTH?

i'm a customer that has stayed despite the price change and now i hear this , just two words : F--ked UP


good god may have to drop one or the other as we are not sure how having two bills that auto draw on our accound will affect us. really starting to dislike what net flix is doing here more and more, thinking that red box at our local gas staion 4 miles up the road is looking more and more appealing. and where the hell is the improved streaming ? haven't seen a true new movie added in months and only a handful of old "new" movies were added this month ?

This move is the straw that broke the camel's back. Netflix screwed themselves and investors are letting them know it. $305 a share to under $130 so far...pretty soon it will be back to the nothing it was. It's sad they were so great for the last 4 years and now I'm probably going to drop the dvd and just keep the streaming until I run out of things to stream (I'm getting close). DVDs will probably go to redbox if they ever put a kiosk close to me!

It really doesn't matter, they're going to lose all their content on streaming when the contracts are up and they can't pay the new rates and Netflix will fail. Their DVD business had a chance of surviving, cablecos don't hate DVDs like they hate streaming. Someone pointed a gun at Reed's right foot and he shot himself in the left.

I'm going to upfront; don't think this is a good idea. Netflix doesn't have a wide brand recognition yet so having two separate brands is just a pointless waste of money at this time.

I am going to wait awhile to see how this plays out. If netflix can get its act together and get new movies that arent datedfrom the 70`s and 80`s then I will give it a go. I am very interested in redbox and blockbuster but i think that they need to realize what a practical starting price base should be for what you get for your money. If I am going to get charged 4.00 bucks a movie , ill go to a redbox machine.It`s nice to have the dvd`s and streaming movies but if companies cannot give the people what they want then i will justrent a movie a few times a week from my trusty redbox.