Netflix attempts to win back subscribers with lame new service Qwikster
By Virginia SmithSeptember 19th, 2011, 8:00 amComments (27)
In an effort to stop hemorrhaging customers after its already infamous sixty-percent price hike, Netflix CEO Reed Hastings has sent out an email to subscribers, and posted on the company blog, offering both a profuse apology and an announcement of the company's new DVD-mailing service, Qwikster.
Aside from reminding you of an instant-messaging service that never quite caught on circa 1998 (seriously, that name), Qwikster will offer classic Netflix DVD-mailing service as well as optional video-game rentals, just under a separate name that according to the company refers to its "quick delivery." This also means that queues for users who choose to have both services will be separate — if something isn't available on streaming, you have to go all the way over to Qwikster to add it to your DVD queue.
Hastings begins his letter simply by saying, "I messed up. I owe everyone an explanation," and continuing, "We realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently." He also filmed a video introducing Qwikster's new CEO, Andy Rendich, which you can check out below.
Initial responses are mixed — some say it's a necessary move, some say it's clumsy and needlessly complicated — but either way it's just as bold a move as the original price increase, so we'll see how Hastings fares in the aftermath.
Commentarium (27 Comments)
I think Netflix is just have a crisis in believing they are something they are not...Like I never saw Netflix as a place to get DVD's and stream - I saw it as simple, where I go to watch movies.
Qwikster sounds more like a sex hookup app.
Thye should take a look at HP, which spun off its traditional much loved engineering equipment side and called it Agilent, to no great effect. Why not keep the original name for the original service, and come up with something better than Qwikster for the streaming service?
So that wasn't a joke? That's what people want, more complicated services.
. It's a natural tendency to put off preventative measures as long as everything is fine today. Once you implement a system it can, for the most part run on its own and you'll be back to business as usual with an even greater sense of security.
"In an effort to stop hemorrhaging customers..." Yeah, because $7.99 a month for all the movies/tv shows you could possibly watch, or DVDs you can rent is seriously hemorrhaging all of us customers, right? God, how did we survive the blood loss back when we had to pay $4 for a single rental at Blockbuster?
Lol @ "have to go all the way over to qwikster". Wahhh, life's rough.
Well, by splitting it into two companies they stave off the loss of the dvd service price hike leaving the streaming service to make plenty of money! DVD rentals are going the way of the dinosaur, anyway. They know it's going to have to move on from it eventually. Ah well.
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