Netflix Abandons Plans To Separate DVD & Streaming Services

Published 4 years ago by

netflix mailing service Netflix Abandons Plans To Separate DVD & Streaming Services

The general consumer reaction to Netflix’s decision to fully separate its DVD mailing and streaming services last month was (put mildly) overwhelmingly negative.

Customers were already quite riled up about the company’s recent decision to split its services – thus raising the cost for people still interested in utilizing both the mailing and streaming options – and the additional inconvenience of having said services become separate brands… well, it ended up just being fuel on the metaphorical fire.

Netflix CEO/co-founder Reed Hastings has released a statement (via the Netflix blog) revealing that the company has scrapped plans to restructure its DVD mailing service as a spinoff company called Qwikster – in reaction to the negative response said plans prompted from its users.

Here is Hastings’ official statement on the matter:

It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs.  This means no change: one website, one account, one password… in other words, no Qwikster.  While the July price change was necessary, we are now done with price changes.

We’re constantly improving our streaming selection. We’ve recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros., Lionsgate, MGM and Miramax. Plus, in the last couple of weeks alone, we’ve added over 3,500 TV episodes from ABC, NBC, FOX, CBS, USA, E!, Nickelodeon, Disney Channel, ABC Family, Discovery Channel, TLC, SyFy, A&E, History, and PBS.

We value our members, and we are committed to making Netflix the best place to get movies & TV shows.  Thank you.

Netflix Logo Netflix Abandons Plans To Separate DVD & Streaming Services

Those who felt the general response to Netflix’s previous announcement was overblown – and those who were infuriated over said plans – can probably agree: this is at least a step in the right direction for the company. While Netflix has simultaneously been in both damage control and renovation mode since its price hike this past summer, the announcement concerning the formation of Qwikster ultimately proved to be ill-timed… even though it’s still possible those plans could be carried out at a later date.

What do you think of this latest development in Netflix’s restructuring plans? Will it allow the company to recover with relative ease, in terms of raising its stock prices and subscriber count? Or is it going to take a while before Netflix returns to its previous levels of growth and profit?

Source: Netflix

TAGS: Netflix
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  1. Personally I didn’t have a problem with it but keeping it together will definitely make things easier.

  2. I think it’s the right choice, but at this point the ship has already sailed. Surprisingly, I’m not missing my Netflix service and have easily found alternatives that work better.

    • … like what other alternatives? we need help!

      • I’m a grad student, so I’m able to get Amazon Prime for like $3 a month. I also use our local library system, which is surprisingly good. Adding that to some free stuff that I get to review and movies we DVR when they have free previews of movie channels, and I’ve got more to watch than I can handle without Netflix.

        My issue is the bad customer service more than what they offer. I know that they still provide a good value even with the price increase. The fact that you can’t even e-mail them and have to call with questions is just one example of their poor set-up.

  3. I think Netflix’s ability to actually listen to their members and then react in a timely manner is what will help them maneuver through these challenging times.

    While some of the decisions made could have been done with more consumer input, thereby potentially eliminating a few, overall Netflix has to do what is necessary to survive financially. If that means two separate companies with separate revenue streams, then so be it, but just don’t throw it at your subscribers and expect all of them to buy it.

    Reed Hastings seems like he is savvy enough to realize that if he or his company makes any more “moves”, particularly in this economy, that the outcome will be overwhelmingly negative.

    There are people out there, like me, who have been subscribers for over a decade, and just recently I’ve been given cause to consider dropping Netflix and picking up HBO and Showtime via DIRECTV. This is not because of the separation of companies, but the price hike and lack of abundant streaming content are definitely factors.

    If you want a streaming company to exist and prosper you need to have content people actually want to stream and watch.

  4. Crazy to think/say bit blockbuster bow has all the same services as Netflix and games and stores, for less. I don’t think they’re streaming yet, but if they have any hopes of beating or at least competing with Netflix that wil have to change soon.

    • Think that is why Blockbuster is offering games and blu-rays also since they don’t have a streaming service yet. IMO with what they have to offer right now they just upped their game to compete with Netflix. They get streaming and they become a serious contender to Netflix as long as they keep their prices within reason.

      • I can stream Blockbuster. However its a pay per stream plus a monthly fee I believe.

  5. Yay!! I was so upset about the announcement to split the company that I deleted my account. Now I think I may have reacted too soon. lol Now I need a new account.

    • You deleted your account cause you would have had to manage your movie choices on another website. WOW

      • What he ^^ said.

    • I have no idea why you would do that, personally, I wouldn’t have publicly told other people that, next time you have something like that to say, think about it, and keep it to yourself to prevent future teasings…

      • I don’t think Buraian was alone in his decision in light of this announcement, lay off you guys.

        • ALOT of people did that. I did it, but because of the price hike mixed with the fact that I am too busy to really get my moneys worth. Just doesnt make sense for me.

        • Well then there were a lot of jump the gun rash decisions. People thinking they were ‘betrayed’ with a price increase and OMG having to go to another site to do a different business transaction with the same company.

          I agree with the others it was (and is) a silly thing to do.

          Netflix with the price increase and seperate website still trumps (overall) anything else out there.

          • people didnt jump the gun, netflix jumped the gun…that was a rash decision they pulled… after already hiking prices 60%, and already increasing prices 2 times before that…netflix finally pushed too much down its customers throats with reeds arrogant apology…so how did people overreact,?because had people not revolted then netflix would of for sure split…and yes splitting would be more of a pain when you have to browse hundreds of movies back and fourth just to see if they have to be mailed..maybe you spend hours on netflixs site but not most hence the reason most people were ticked….and $8 to stream outdated and mostly worthless movies/shows isnt a deal, because you get that and a ton more on tv, …$8 for 1 movie at a time and only if you watch the movies right away means you could get 8 movies a month at most but most people dont hence the reason why people dont like netflixs little stunt and find cheaper ways now…so netflix has dethroned themselves as the customers slowly disappear

            • Really? So when I checked out a video last week I used a different website?

              Nope. They stated change was coming. People were not happy expressed their unhappiness and Netflix did not change.

              You did not wake up one morning and find two diffent web sites.

              People over-reacted by leaving as soon as they heard the news. What was wrong with waiting until the day/week of the change then cancel? That is called over reacting.

              Again I pay $16.78 a month. This covers 1 DVD out and (at last check) 2 streaming lines of whatever I (and son/wife) want to watch.

              I just finished The Avengers and constanly watching American Dad, ‘Asian’ Horror flicks, Anime etc that I cant seem to find anywhere else.

              So please tell me where I can get a better deal (legally)?

              The average turn around time is 2-4 days for the DVDs (at least for me) so as you said thats 8 DVDs a month.

              Again $16.78…. Please let me know who has a better deal (include service and selection in that not jsut price).

              So in closing for people to ‘jump’ ship after so many years of having it so good with a low price was a knee jerk over reaction.

              • Aknot do you work for Netflix? You seem to be getting very defensive for other people’s outlook on all of this.

                • This would be the thrird time this question was asked of me and the answer would still be no.

                  It is not their outlook. Outlook would be looking at something from the outside predicting what may happen.

                  What people have done (as stated) was jump the gun based on what was going to happen.

                  Sometimes it ends up being a good idea sometimes not so.

                  What people are doing is saying man it should always be cheap and easy. they think they made Netflix what they are. When in fact they are a small part of that. Very small. (just like me)

                  Now when it comes to light that they are not going to make 2 sites it makes the people (IMO) that made the snap judgement over price and sites leave look silly.

                  It is quite simple for me. Price and availability. Netflix beats all. If there comes a time that something comes along that is better I will switch. If there comes a time that I cant afford or dont need it I will quit.

                  However to just quit over something such as this (especially when it hasnt even happened) is well silly.

                  People appear to be spoiled.

  6. I watch enough TV shows and movies on there that I would get my moneys worth if they charged more

    It would be a great deal either way IMO

  7. as long as i can still get my DVD’s i’m happy ( in the middle of BSG right now then The Beast (with Swayze)

  8. I am happy with this decision.

    Now if only Reed Hastings allowed a feedback mechanism electronically on the Netflix website, that would be a step in the right direction. Why ask me to call a number? What is this, 1990?

    If Reed Hastings wants to send me a mass e-mail, at least have a reply-to address to arner feedback, if you are really interested in what your custoemrs have to say.

    I suspended my streaming part of my account because of that previous announcement. I have one master list of the content I want to watch. I am sure most people who use Netflix only want one master list on one master website.

    Mr. Hastings marketing people obviously did not think that through too well. Maybe they will learn. Judging by the stock drop in Netflix, if they don’t start listening to their customers soon, Blockbuster will probably outlast Netflix. Who would have thought that?

  9. What happend to renting out games? Are they not doing that anymore?

  10. I guess Hastings is no Steve Jobs. 8)


    • Exactly. They need to let that guy go. After the price hike, Netflix should have kept their heads down and increased their libraries. Instead they thought people would just keep swallowing their malarky. I hope Blockbuster rallies back. I’d switch in a minute.

    • That’s funny; same thing I was thinking. Jobs had a knack for providing products that people didn’t know the even wanted, yet customers were happy to pay a premium for them. Hastings seems to be the opposite, giving customers exactly what they want for a reasonable price, then messing up the whole formula and gouging them in the process. Real smooth.

  11. One smart move Netflix has made in the past few months. Now they need to finish screwing their heads back on and lower the prices back to what they once were.

    • Not going to happen. You do know prices increase from time to time. Why not yell at the oil companies to have gas taken back to .25 a gallon… (yes I remember that)?

      • I am not really mad that the increased their prices. I just think they are stupid to hike it as much as they did. I could have understood $2 or $3 and so could have a lot of other people but to raise it as much as they did in one instance makes for bad business. I still have both(for now) but a lot of people dropped it all together after the hike including several of my friends. BTW I remember when gas was .79 a gallon. Miss those days lol

        • Sorry whne you say “Now they need to finish screwing their heads back on and lower the prices back to what they once were.”

          That seems like the increase upset you.

          I also akin it to wants and needs. This is a want. No one needs this. If they were upset at the price increase (IMO) they dont want it bad enough.

          Which is fine. Not everyone can afford extras. I would never knock someone for dropping something they can not afford if it was a want.

          However if they are dropping it because they THINK it is too much or just cause its kind of silly IMO.

          Again they had it so good for so long. I hear people constantly whine and complain about cjanges in an MMO I play online. Im like hey you dont like it quit. They seem to always stay around…. I dont understand.

          Service/Value/Price, Netflix still (IMO) cant be beat. It is something I enjoy and can afford so I want it. For now.

          • I was with you for a little while, but you lost me with the “Service/Value/Price” comment. Yes, you can make an argument on the price for what you get. However, Netflix has terrible service. While most companies allow you to e-mail their customer service or even do a live chat, Netflix makes you call them. This is ridiculously behind the times. They’ve also continued to make their website harder to use and removed features that many people enjoyed like the Community (Friends) section and the User Reviews. They also push the streaming so much on the site and don’t offer good services to other members.

            In terms of quality, Netflix streaming has many glitches and sometimes doesn’t work at all. It also offers quality that’s below HD for most movies and sometimes even of VHS quality. As someone who still wants good picture and sound with my movies, this is a big downgrade from DVD and even from other streaming options. Finally, they don’t offer the selection to make it worthwhile to deal with the bad service and poor quality.

            Like others have said, I would have been fine with a price increase, but the way it was handled and the large amount at once was insulting to members. As consumers, we don’t have much power, but I decided this wasn’t a company that I’d like to support. Everyone makes their own choice, but calling us a bunch of whiners automatically loses your argument with me.

            • I have yet to have a problem with Netflix DVD or streaming service where I felt the need to contact someone.

              I have had emails sent to me requesting information on the quality of streams. There was no number to call it was all done via email/online.

              I have no problem finding movies and usign the interface for streaming or DVDs. What you put in a title or genre and away you go? You can even go by actor etc if I am not mistaken.

              So who has better “Service/Value/Price”?

              And people would be complaining that the price went up last year why are they doing it this year?

              “Reed Hastings’ company says it’s a cost issue. If people are going to use both his DVD-by-mail service and his Web video streaming service, he’ll need more money to support both businesses.”

              Sounds like it was great until a bunch of people got on board and Blockbuster got tossed to the side. More business needs more revenue to make sure people get the product.

              When more people come on board and demand you need more resources to provide.

              Maybe they did not forsee the onslaught.

              Still I (me) feel it is worth every penny at this time. I have a fast connection and have no problems viewing.

          • That was my outlook on it. I wasn’t whining nor am I whining. I just think they are stupid for hiking the prices as much as they did. That was a bad decision move on their part. I understand things change but when you hike it as much as they did at once that tends to alienate people. If you’re going to raise it to that price do it over a period of time not all at once. That is what has pissed a lot of people off to drop it all together. If you do it over a period of time people would probably be more subject to it. That is my opinion anyway. It is what it is and I probably won’t keep the dvd service much longer. As I stated I wasn’t upset by the price increase but I don’t use the dvd service a whole lot(have a dvd on my kitchen counter for a while now) for it to be worth my while. If I can’t find it streaming I will just go to a Redbox or find it online somewhere.

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