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Netflix Renames DVD Rental Service, Adds Video Games

Netflix announces that it is rebranding the DVD portion of its service to Qwickster to differentiate from its streaming service, and will be adding Xbox 360 and PlayStation 3 video game rentals to the Qwikster side of the service. The blog posting announcing this begins with an apology for the perception that the company "lacked respect and humility" in the way it announced the separation of DVD and streaming, and the price changes this entailed, calling this "arrogance based upon past success." Here's word:

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. Another advantage of separate websites is simplicity for our members. Each website will be focused on just one thing (DVDs or streaming) and will be even easier to use. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated. So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn’t show up on Netflix, and vice-versa.

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60. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 22, 2011, 02:32 Beaner
 
@kanniball because a lot of young folks today have been desensitized to poor quality. Both with audio and video. No one is going to deny streaming will grow. Its the future. But currently a lot of the stramed movies I've watched are pretty bad quality.  
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59. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 20, 2011, 18:08 kanniballl
 
wrlwnd wrote on Sep 20, 2011, 12:40:
I don't get the average American consumer anymore.

Why all the love for streaming?

First and foremost, streaming quality SUCKS compared to Blu-Ray. Why buy that nice new HDTV if you're just gonna watch sucky compressed content on it?
...

Buy a clue people.

Some things actually work well, like iTunes (which isn't really streaming but still decent). Supposedly Vudu's HDX is alright too.

Neither are anywhere near BluRay's quality but I can vouch for iTunes looking nicer than most HD FIOS.

I don't do it for everything, but when I want something now (spur of the moment) then I usually iTunes the thing. The BlockBuster near me closed down and the vending machine at my A&P (grocery) isn't that well stocked.

If I know that "I'm going to watch X over the weekend a few days from now" then I'll make other arrangements.

OR if it's something that's just pure eye candy (like Avatar) in which case I want every bit of quality available.
 
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58. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 20, 2011, 12:40 wrlwnd
 
I don't get the average American consumer anymore.

Why all the love for streaming?

First and foremost, streaming quality SUCKS compared to Blu-Ray. Why buy that nice new HDTV if you're just gonna watch sucky compressed content on it?

Secondly, Netflix streaming selection SUCKS. But hey, keep watching those 5-year old movies since that's pretty much all you can get.

Thirdly, Netflix pricing is still great. All the people bitching about the price increase are clueless. Tell me where I can get a better deal than viewing 6 Blu-Ray DVD's per month for $9, without having to spend a single CENT on gas.

Buy a clue people.
 
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57. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 23:46 Jensen
 
According to a disproportional Venn diagram I saw, half of Netflix customers subscribe to both services. So this is a massive downgrade in service for half of their customers after a large price increase.

I think the new price is fair, and still much cheaper than any other option, but I don't understand the website downgrades.

Hopefully DVDs will die fast enough that streaming services will have coverage of video content like Spotify has for music content.

One of my favorite things about Netflix is that they don't have any ads, except the flap on the DVD mailer that just advertises new movies and streaming devices. It's nice in this age of YouTube overlaying ads on video content and having annoying audio ads in the margins.
 
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56. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 20:54 PropheT
 
Beamer wrote on Sep 19, 2011, 10:58:
People keep mentioning this, but it's wrong.
Does your high definition cable count against bandwith caps?
Nope.
Does it take bandwith?
Yep.

It's this transition we want. Consumers can't do much to fight bandwith caps, but content providers can. The last thing the cable companies want is to piss off the content providers. They'll be the ones to force change.

If the content we were talking about here was readily and easily available through regular cable service that didn't count on your bandwidth cap, I doubt anyone would be even having this conversation.

The only content providers cable would be pissing off by limiting streaming aren't the ones funding those cable providers through big contracts.

Either way, in most of the country there's not enough competition for broadband access for them to care. Being able to cancel your service and go somewhere else isn't an option throughout a large portion of the U.S. right now.
 
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55. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 20:31 [VG]Reagle
 
JohnnyRotten wrote on Sep 19, 2011, 17:31:

IMHO, the better approach at the onset would have been to talk to the customer about the problem of rising prices for content leasing versus the subscription cost. Create a sense of "them vs. us" that the community could have embraced on the same side as the company.

Instead, we get a marketing email framed as an apology in which they basically announce they're doubling down on their first mistake with the Qwikster rollout.


too bad they aren't smart enough to listen.
 
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54. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 17:31 JohnnyRotten
 
Verno wrote on Sep 19, 2011, 13:35:
You can't put a price on bad PR either. The Netflix brand was consumer adored before this incident, they bungled the whole thing from start to finish. It hurts future promotions that could potentially have any negative impact to the consumer and it's going to be very expensive to get that trust back.

Yeah, the bloom appears to be off the rose here. It would seem that they've lost the trust of the community, and that could be a killer for them in the long term.

IMHO, the better approach at the onset would have been to talk to the customer about the problem of rising prices for content leasing versus the subscription cost. Create a sense of "them vs. us" that the community could have embraced on the same side as the company.

Instead, we get a marketing email framed as an apology in which they basically announce they're doubling down on their first mistake with the Qwikster rollout.

Their approach and tone seems to have created the "them vs. us", but putting the company and the customers on opposite sides of the fence.

Not to smart, IMHO.

 
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53. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 17:19 JohnnyRotten
 
InBlack wrote on Sep 19, 2011, 09:39:
Yeah, way to go Netflix. Why not simply put a HUGE banner to thepiratebay on your main site and get it over with?

What?
 
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52. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 16:34 Creston
 
^Drag0n^ wrote on Sep 19, 2011, 15:19:
Stock price does not line up with their actual revenue, which is what I think Ruffiana was trying to say. Stock prices fluctuate based on who had too many helpings of baked beans for dinner. Earnings changes? That's the real indicator of how healthy the company is (and whether or not that stock will ride back up along with the rest of the sector).

^D^

To an extent, yes. But if your stock price keeps plummeting like that, and investors lose confidence, then those guys who had bad beans for dinner will tank your company faster than you can blink. One of the joys of being publicly traded.

Anyway, I never even said that they were a failure, I just said they were arrogant jackasses, so I don't really know why we ever got on this tangent to begin with.

Creston
 
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51. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 15:19 ^Drag0n^
 
Creston wrote on Sep 19, 2011, 14:21:
Ruffiana wrote on Sep 19, 2011, 13:27:
Creston wrote on Sep 19, 2011, 10:49:
"For all of you who complained that your Netflix bill doubled, we listened. Now, your Netflix bill will go back to what it used to be!"

I love how their arrogance kept right on going until hundreds of thousands of people quit their subscription. And now all of a sudden they're humble and customer-focused.

Creston

They increased the cost for their service by 60% and lost about 1.6% of their customers (400k of 25mil worldwide). I don't think there's any business out there that would consider that a failure.

You might want to focus on company value rather than subscribers. I think you'll see quite a different story.

Edit : nin's basically already said the same thing. Their stock's spiralling downward.

Creston

Stock price does not line up with their actual revenue, which is what I think Ruffiana was trying to say. Stock prices fluctuate based on who had too many helpings of baked beans for dinner. Earnings changes? That's the real indicator of how healthy the company is (and whether or not that stock will ride back up along with the rest of the sector).

^D^
 
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50. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 15:13 Tumbler
 
I'm extremely happy with netflix as a streaming service. The DVD rental market has gotten pretty sad since the studios started offering the places I shop at most, redbox and netflix, the movies a month after they come out.

I'd love to see netflix streaming go up in price while adding substantially more content. The experience of clicking play now and seeing the movie start instantly is so much nicer than all the bullshit you put up with getting a physical copy on dvd. I hate fighting menu's just to get to the movie and blu-rays have only gotten worse.

I'm happy renting from Redbox but I'd rather just pay netflix for everything. $4 new release 24 hour rentals, older streaming movies, pay channels like showtime. I want to pay netflix for all of that.
 
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49. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 15:11 wolve
 
It was up earlier this morning, but now Netflix stock is down 5.2%. Guess investors don't care for the re-branding either.  
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48. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 14:49 nin
 
wolve wrote on Sep 19, 2011, 14:45:
Saw this article posted somewhere else and it gave me a good chuckle. The comments are pretty decent too.

http://bit.ly/p0zVjH


I like "Fuckster"...

 
http://www.nin.com/pub/tension/
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47. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 14:45 wolve
 
Saw this article posted somewhere else and it gave me a good chuckle. The comments are pretty decent too.

http://bit.ly/p0zVjH
 
Avatar 1182
 
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46. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 14:21 Creston
 
Ruffiana wrote on Sep 19, 2011, 13:27:
Creston wrote on Sep 19, 2011, 10:49:
"For all of you who complained that your Netflix bill doubled, we listened. Now, your Netflix bill will go back to what it used to be!"

I love how their arrogance kept right on going until hundreds of thousands of people quit their subscription. And now all of a sudden they're humble and customer-focused.

Creston

They increased the cost for their service by 60% and lost about 1.6% of their customers (400k of 25mil worldwide). I don't think there's any business out there that would consider that a failure.

You might want to focus on company value rather than subscribers. I think you'll see quite a different story.

Edit : nin's basically already said the same thing. Their stock's spiralling downward.

Creston
 
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45. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 14:07 Rhino
 
Verno wrote on Sep 19, 2011, 13:35:
You can't put a price on bad PR either. The Netflix brand was consumer adored before this incident, they bungled the whole thing from start to finish. It hurts future promotions that could potentially have any negative impact to the consumer and it's going to be very expensive to get that trust back.

Agreed. What got me and a few of my friends and family onto Netflix was positive word of mouth. I don't know anybody (not saying that this is an absolute for everybody, only that I don't know anybody) that joined Netflix on the strength of its TV commercials, web ads, etc. I've decreased my membership to streaming-only, and I make no illusions that I am the only one. People stop utilizing services all of the time, Netflix or otherwise; however, so long as there is a steady stream of new membership this is not an issue. With word of mouth taking such a turn then I cannot imagine a scenario where this will become anything but a long term issue for Netflix.
 
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44. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 14:05 Ray Marden
 
It is still a good overall service for the price, but it really needs to get some contracts in place, else it is going to become obsolete. I suspect the writing is on the wall for the company regardless - it does not control the pipes to my home nor, outside of one series, is it a content producer.

Otherwise, the service was not performing the way I wanted it to. I had a queue of close to 200 titles, but maybe 10% of them were actually available for streaming? Even then, a few conversions had audio/quality issues, certainly no extras, and foreign releases were typically limited to a single language. On top of that is the issue with titles being available for steaming today, but gone tomorrow, and coming back another day.

Looking to the physical media, it was not offering launch-day mailings, could take a month or more for a title to even be offered, it was having problems maintaining inventory (I had about thirty previously-available titles make their way to the dreaded Unavailable queue,) and it was manipulating the queues too much in favor of the new users - nothing like waiting three months for your very first, highest priority selection.

These days, Netflx streaming is something I have running in the background while working or playing WoW. I rely on Blu-Rays or VoD for titles I actively am seeking out, else Netflix fills space or lets me watch the titles I had minor interest in, but would never seek out nor would I ever consider paying direct money to rent. The new website is complete crap - it shows less titles, it does not give me the rating information up front, it no longer filters out material I have already watched, it is slower to give me description information, etc.

The only two positives I can really attribute to the service are that it is far, far cheaper than my gigantic cable bill and that, through boredom, I have occasionally stumbled onto really great shows/movies that I would never have considered if not for the flat Netflix rate.
A few times, I have struggled to find anything to steam.
Wishing Brighthouse spent less on advertising and more on superior compression,
Ray
 
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43. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 14:02 Capella
 
Does anyone else think this has to do with the Postal Service having financial troubles?

This comment was edited on Sep 19, 2011, 16:17.
 
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42. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 13:35 Verno
 
You can't put a price on bad PR either. The Netflix brand was consumer adored before this incident, they bungled the whole thing from start to finish. It hurts future promotions that could potentially have any negative impact to the consumer and it's going to be very expensive to get that trust back.  
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41. Re: Netflix Renames DVD Rental Service, Adds Video Games Sep 19, 2011, 13:31 nin
 
Ruffiana wrote on Sep 19, 2011, 13:27:
Creston wrote on Sep 19, 2011, 10:49:
"For all of you who complained that your Netflix bill doubled, we listened. Now, your Netflix bill will go back to what it used to be!"

I love how their arrogance kept right on going until hundreds of thousands of people quit their subscription. And now all of a sudden they're humble and customer-focused.

Creston

They increased the cost for their service by 60% and lost about 1.6% of their customers (400k of 25mil worldwide). I don't think there's any business out there that would consider that a failure.


Their stock price has gone from $300 to $151, currently. I'd say that's a failure.

 
http://www.nin.com/pub/tension/
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