Qwikster is Dead, DVDs Staying at Netflix

Impulse said:
lol How did Hastings / Netflix cause the unemployment of any Americans? I guessed he helped bankrupt Blockbuster, but their outdated business model had more to do with that. If anything Netflix provided a stimulus to the postal service... He made it as CEO because he founded a highly successful company that disrupted one of the most greedy self serving industries in the country. The guy was in the Peace Corps for pete's sake...

He's hardly the type of CEO that's taken it's turn at HP lately only to leave 6 months later with a ridiculous bonus. Not saying he hasn't made mistakes, I canceled my sub after only three months because the price hike didn't make it as appealing for me personally... But a lot more than his role as CEO went into those decisions.
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I'm not saying he is directly responsible. I'm saying moronic CEO's and boards like him are ruining themselves and the economy with bad decisions to try to turn a quick buck. There are probably many many more qualified individuals out there unemployed that can make better business decisions then the recent trend of failures that keep getting reported in the news. Thought for another thread though.
 
kac77 said:
I don't know about that. Netflix has made a series of mistakes that Apple wouldn't have and didn't.

The first mistake and really it's probably the biggest was allowing MS to dictate it's media standard and even which consoles/platforms were to receive preference (XBOX360 vs PS3) for their streaming service. Netflix should be looking out for Netflix not Microsoft. Considering that MS is also offering streaming services I haven't a clue why they would do that.

You can't have leverage with the MPAA if you don't have enough users and since it's streaming service is still in it's infancy it would have been best not to play games with which devices would get the service and which would not. Apple has leverage with the music studios because every device they make is tied into iTunes. How many users is that? 297,000,000 How many Netflix users use the streaming service? Roughly 5,800,000

Since Netflix doesn't make devices the goal is to stick that service on as many devices as possible. Pfft I'd have that bitch on every damn OS I could find. From Blackberry devices to Symbian if the device could display a 24-bit color palette and had a screen, my shit would be all up in there.
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Problem is, unlike music, video isn't considered inherently portable... Pretty sure all the licensing / distribution agreements and such make special provisions for mobile devices, the necessary DRM on said devices, etc etc. Like I said before, the MPAA got wise after Apple grabbed the music studios by the balls. Netflix was fighting an uphill battle from the start with streaming ink.
 
Hahahastings apologized. Again!
The article said his apology pushed the share price up 7%, but all I see is that while it rose steadily from $110 over the past 3 days, it went down from $128 to $114.65 now after his apology.

The number of people who cancelled or reduced their subscription must have been gigantic.

TheWeazmeister said:
The real story on this getting nixed is that Amazon/Netflix deal looks to be off the table as well :( That would have been sweet, but oh well.
http://www.thestreet.com/story/1127...deal-off-table-analysts.html?CM_VEN=AD|TWR|JC
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I don't think there was ever such a deal, Netflix wanted to move into streaming, not sell it off. Many people actually thought the opposite, that they wanted to sell Qwickster, not their Netflix soul.
 
Chimel said:
I don't think there was ever such a deal, Netflix wanted to move into streaming, not sell it off. Many people actually thought the opposite, that they wanted to sell Qwickster, not their Netflix soul.
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The idea wasn't Netflix moving into anything, but more Amazon wanting to increasing its footprint. RTFA next time :D

"I wouldn't be surprised to see a breakup fee change hands."
 
Maybe if, in the future, the morons made an attempt to find out WHAT THEIR CUSTOMERS WANT, before making big changes, they wouldn't have to backpedal so much.

They still might make changes, but they wouldn't be so surprised by their customer's reaction.
 
Fix Me said:
Sorry Netflix, I already downgraded my account to streaming only (it takes effect today) in the hopes that the content eventually improves. I've already seen some good signs since they're adding The Walking Dead, which I have not seen yet. I'm not switching back to a DVD membership now, it's too late.
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Congrats, that's what they wanted you to do anyways. They know the DVD business is going to die off the next couple of years and Blu-ray might not ever push enough volume to be worth it alone.
 
I just read that on CNN today. Talk about a company that is quickly becoming clueless.

cnn.com said:
The company had already lost an estimated 1 million customers, or about 4% of its subscribers, after Netflix split its DVD and streaming businesses in July, effectively raising prices on subscribers of both by 60%.

Analysts said the company's second 180-degree turn indicates that even more customers were saying, "So long, farewell, auf Wiedersehen, adieu" to the business.

"Basically, these guys are desperate, and this confirms it," said Tony Wible, analyst at Janney Capital Markets.
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hity645 said:
Netflix is too late, I'm looking hard at alternatives.
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I did after the first announcement of the split, but ultimately, I realized its still the cheapest. So i sucked it up and thought i'd just see how it goes. If you find a better deal, let us know.
 
Impulse said:
Problem is, unlike music, video isn't considered inherently portable... Pretty sure all the licensing / distribution agreements and such make special provisions for mobile devices, the necessary DRM on said devices, etc etc. Like I said before, the MPAA got wise after Apple grabbed the music studios by the balls. Netflix was fighting an uphill battle from the start with streaming ink.
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Pfft maybe 5 years ago it wasn't but considering most smartphones have anywhere from 8 gigs to 16 gigs of storage it's just as portable. If the video is scaled down to the resolution of the device even more so.

In terms of DRM there's nothing stopping any device from having it. I fail to see how that's a valid argument.

It still all comes down to numbers. Netflix would have more leverage if it wasn't playing footsie with the devices it supported. Microsoft itself doesn't seem to have a problem. I'm thinking that 40 million XBOX 360 devices sold to date is part of the reason.
 
must be awesome to be a CEO. This idiot is driving Netfilx in the job yet still has a job and will most likely get millions if they ever let him go
 
TwiceOver said:
I know that I got a pretty hearty laugh out of this when I read that email.

-Dan
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Me too haha. I have streaming only anyways so the price change or the split did not effect me but it was funny to watch them piss off all their customers.
 
Quite the surprise, hopefully they can focus back on improving their streaming selection so I can resub.
 
kac77 said:
Pfft maybe 5 years ago it wasn't but considering most smartphones have anywhere from 8 gigs to 16 gigs of storage it's just as portable. If the video is scaled down to the resolution of the device even more so.

In terms of DRM there's nothing stopping any device from having it. I fail to see how that's a valid argument.

It still all comes down to numbers. Netflix would have more leverage if it wasn't playing footsie with the devices it supported. Microsoft itself doesn't seem to have a problem. I'm thinking that 40 million XBOX 360 devices sold to date is part of the reason.
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I didn't say I agreed with those arguments, but they're the deal breaking arguments that every single movie studio and TV network will bring up whenever they're re-negotiating with Netflix. I dunno why people don't understand that the source content providers DON'T want Netflix to survive. Netflix on Android took longer than on iOS because of DRM concerns, it's ridiculous, because no one's gonna rip a low bitrate mobile stream, but that's Hollywood for you.

Why did we have a writer's strike two or three years ago? Because studios were screwing them out of online royalties, same scenarios occur when you look at mobile. Those in charge of the content will use any excuse to create special scenarios where they can wring even more money out of distribution. Despite all that Netflix has actually landed on a remarkable amount of devices if you ask me... Basically all high end smartphones, tablets, set top boxes, game consoles, and even several DVRs.

Making the service widely available hasn't been their biggest hurdle, keeping and expanding their content deals has been the issue.
 
Streaming won't improve much until the studios stop the retrograde practice of exclusivity deals.
At least Netflix is trying, a bit late after all the summer blunders; They mention in the Netflix blog adding 3,500 TV show episodes "recently."
But only a few hundred movies, compared to the tens of thousands more that are available by disc mail, still the best movie service there is in the States.

Today's reaction to Reed Hastings' apology ended pretty badly, with the lowest share price reached over a year, $107.31. It closed a bit higher, at $111.62, but it is also the lowest closing price in over a year. All in all $10.376 billions in capital loss in just 3 months, almost $200 lost on each share, 5 times the $2.2B total revenue for last year and 64 times the $161M total profit. And the share progression was basically free money! I bet the "expensive" Starz streaming deal now looks like peanuts...

I don't have the inside information, but Hastings sure does know exactly how many customers he lost during the mass exodus compared to the usual cancellation rate, how many reduced their subscription from streaming + disc mailing to one of these only, how many reduced their plan to less discs out at-a-time or cancelled Blu-ray, and what was the real progression rate (if any) for new customers. Hence his retraction. From the outside, I can only imagine that the numbers are catastrophic. They really didn't need to rebuild Netflix in the U.S. at a time when they are building it in Canada, South America, Europe and probably have more expansion planned.

Netflix co-founder Marc Randolph must feel like he's the screw-up now... ^-^
 
I fucking hate netflix anyway the video and sound quality is ass, and waiting for disk in the mail sucks. I rather go to a real video store and get the real disc with dts master audio /Dolby true HD tracks and thanks to Netflix and there suckage there isn't any and red box blows and only has crap new movies only punk teens and soccer moms want.

Netflix is worse than DVD quailty the Fucking HD is fake and compressed as all hell.

oh and the video game selection sucks balls in red box too.

I hope Netflix and red box die a quick death.
 
Lol, waiting for Netflix discs is less than a day if you order before say 2-4PM, and you have a free spot in your queue, it arrives in the noon post for me.
You won't get close to the selection Netflix offers if you go to a video store, but I agree streaming sucks...

By the way, a Netflix employee confirmed earlier that game rentals will come to Netflix too, now that there is no Qwickster split.
 
Ya people who are dissing this guy don't understand the complications of this business. They are trying to find something that works. Getting the contracts for the movies and streaming was what MADE netflix, in fact the same is true for Apple everything they did was about the iPod and their contracts for iTunes had those contracts not happened we never would have seen the Apple or netflix we see today.

Now on to the problem Netflix is seeing contracts expire and they have a business model that will not work as the Movie Industry is demanding alot more. They are trying to rearrange unfortunately they are seeing competition from Companies like Google and Amazon as they jump into the game. They have already built an image as a unlimited service but honestly I do not think it is sustainable. The movie studios only signed with netflix and Apple because they did not see what was coming. Now they see it and in the case of Apple who already has a monopoly they cannot do anything. But in netflix's case they have options and they will screw netflix.

I am sure if netflix had their way they would eliminate the mail service and deliver everything including new releases by streaming. The problem is there is no way the movie industry will let that go unless it is a pay per view model. I really do not see an easy option, netflix is losing content as contracts expire and I think that will keep happening. If anyone here thinks they have a solution pipe in. But companies do not make crazy decisions like this unless they see a cash flow problem coming. And that is what is going on for netflix.

Personally I will also be getting rid of my streaming service. Just not enough on it and there is no good deal on a combo package now so it is cheaper for me to do redbox.

I would like to see netflix give up on the all you can eat buffet and just do $1 streaming of new releases. If that got me the releases and saved me a trip to redbox I would pay. But $8 for DVDs is not worth is unless you watch alot of movies about 8 per month. I and most people I think do not have that time.
 
rudy said:
Ya people who are dissing this guy don't understand the complications of this business. They are trying to find something that works. Getting the contracts for the movies and streaming was what MADE netflix, in fact the same is true for Apple everything they did was about the iPod and their contracts for iTunes had those contracts not happened we never would have seen the Apple or netflix we see today.

Now on to the problem Netflix is seeing contracts expire and they have a business model that will not work as the Movie Industry is demanding alot more. They are trying to rearrange unfortunately they are seeing competition from Companies like Google and Amazon as they jump into the game. They have already built an image as a unlimited service but honestly I do not think it is sustainable. The movie studios only signed with netflix and Apple because they did not see what was coming. Now they see it and in the case of Apple who already has a monopoly they cannot do anything. But in netflix's case they have options and they will screw netflix.

I am sure if netflix had their way they would eliminate the mail service and deliver everything including new releases by streaming. The problem is there is no way the movie industry will let that go unless it is a pay per view model. I really do not see an easy option, netflix is losing content as contracts expire and I think that will keep happening. If anyone here thinks they have a solution pipe in. But companies do not make crazy decisions like this unless they see a cash flow problem coming. And that is what is going on for netflix.

Personally I will also be getting rid of my streaming service. Just not enough on it and there is no good deal on a combo package now so it is cheaper for me to do redbox.

I would like to see netflix give up on the all you can eat buffet and just do $1 streaming of new releases. If that got me the releases and saved me a trip to redbox I would pay. But $8 for DVDs is not worth is unless you watch alot of movies about 8 per month. I and most people I think do not have that time.
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QFT, netflix has been backed into a corner, plain and simple... And we as consumers are the biggest losers in the long run. Online rentals already cost more than Redox rentals on nearly every single streaming service that charges per individual rental, hell on many of them the cost is higher than regular Blockbuster for that matter (and you get less time to watch the movie, granted since it's streaming it's not a huge deal).
 
Shambler said:
Good decision by Netflix. A step in the right direction.

Side note: Still sticking with Netflix even though I am seriously considering Amazon.
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I have both, netflix is still the better service, only think I like about amazon is renting new releases.
 
wasteomind said:
I'm not saying he is directly responsible. I'm saying moronic CEO's and boards like him are ruining themselves and the economy with bad decisions to try to turn a quick buck. There are probably many many more qualified individuals out there unemployed that can make better business decisions then the recent trend of failures that keep getting reported in the news. Thought for another thread though.
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Uh no. CEO qualified people are not going to sit on their ass all day collecting their handout checks.
 
next-Jin said:
Uh no. CEO qualified people are not going to sit on their ass all day collecting their handout checks.
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Because that is what I said or was implying? You are telling me every CEO qualified person in the country is currently employed? Not a single one of them is down on their luck and searching for work like millions of others? News to me. Thanks.
 
Netflix whiplash stirs angry mobs -- again
CNN said:
Angry Netflix mobs aren't putting away the pitchforks yet.

The company said Monday that it would kill its spinoff, Qwikster, only a month after it was announced.

That did little to placate consumers who are still fuming about price increases the company announced in July and who are starting to see Netflix as a once-innovative service that's lost its way.

"Netflix does more flip-flopping than a fish on a hot dock," a Twitter user named Steve Harrison wrote.

"Netflix's approval rating is so low right now it could run for president," another said.

"I don't think this fixes anything," said Ann Marie Blodgett, a 37-year-old in Utah. "This will make people realize how right they were to leave them. Now they're just back-pedaling."

...
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Well they broke 2 more yearly records again today, with the lowest price at $103.13 and closing price at $108.66.
Hopefully Hastings will shut his mouth for the next few weeks and stop apologizing...
 
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