Monday, September 19, 2011

Netflix DVD Offering soon to be renamed as Qwikster

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If you are a DVD by Mail subscriber with Netflix, then beware.  Very soon you're access to the service is going to change.  So, what's going to happen?  And how will it be different?  First, the name is changing.  Netflix has separated it's two offerings: Instant Streaming and DVD by Mail into Netflix Instant Streaming (name is staying) and Qwikster (with the subtitle of 'A Netflix Company').


With a name change also comes a new URL or homepage to use with the service.  Now, according to Andy Rendich (the newly appointed CEO of Qwikster), "the new site will maintain the look and feel" of the Netflix site but with the new logo; in their announcement video on YouTube.  Great right?  Maybe not.  Because in an apology email I received from Netflix this morning authored by Reed Hastings (CEO/Cofounder of Netflix) and sent to all Netflix customers; he mentions this towards the end of the letter:

"A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated."


So, I read this as you will now have to maintain 2 separate Movie Queues that aren't linked in any way.  Maybe not a huge deal for some because we originally had 2 queues (one for Streaming and the other for DVD's) but at least they were only a tab away on the same site.  Another way the service is changing is there will now be a 'Video Games' option that will allow user's to rent PS3, Xbox 360, and Wii titles for additional cost.  But so far, I have yet to read what that 'additonal cost' will entail.  Also, the envelopes will still be red, but will sport the new logo.


So why the recent changes?  After all, the company took quite a bit of heat when the decided to hike up their rates to what would equate to a 60% price increase a month for customer's who use both DVD and Streaming services.  So, was it perhaps the best idea to announce such a drastic change with the company's structure and offerings by way of an apology letter, which was intended to help smooth out some of the damage done by the price increase? I'm not so sure.  Time will tell.  I'm not a business minded guy.  Maybe they decided to go ahead and piss of the DVD customer's all at one time and try to immediately start building that service back up if they start loosing subscriptions?  No clue.  Or maybe it was done in the spirit of transparency to let everyone know what is going on with the company.


For those of you who subscribe to the DVD by Mail offering and Streaming, you will see two charges on your credit card statement each month once Qwikster goes live. Those charges will be from both Netflix and Qwikster (instead of a single deduction from just Netflix).  If you would like to see or read more about the changes and why the changes are happening checkout the Netflix Bloghttp://bit.ly/pdA81h


And checkout their announcement video on YouTube:  http://youtu.be/c8Tn8n5CIPk


On the bright they, the story now is that there will be no more price changes.  However, I'm sure that may change over time as cost of operations may increase.  But once again, time will tell.

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