The Qwikster website. It may as well have a blinking “under construction” sign
So there’s a lot of drama recently over Netflix raising prices for the one DVD plus unlimited streaming option from $10 a month to $16 a month. (They still offer $7.99/month streaming only packages or one DVD for that price, not both.) Plus Netflix recently lost their contract with Starz entertainment, which means that as of February 2012, all Starz content (including films from Disney and Sony) will be removed from Netflix streaming. This lead to a stock price drop, along with a loss of a whopping 600,000 subscribers from June to September. (They have 25 million subscribers.)
Anyway Netflix just sent out an apology to their existing subscribers (I have the streaming only option, but I don’t know for how much longer I’ll keep it) along with an announcement that they’re going to rename their DVD service “Qwikster.” What is this, 1997? That’s ridiculous. Aren’t they afraid they’re going to get confused with “Flixster“? Plus, it has creative spelling that makes it easily confused with “Quixster,” which is how I originally read it because it’s closer to “Netflix,” or “Quickster,” because that’s how you spell “Quick.” They never even bought the Quixster or Quickster domains. They probably chose this creative spelling because those other domains were taken. This is a startup move, not something a huge company should be doing.
Dear Katie [ed note: my real name],
I messed up. I owe you an explanation.
It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.
For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.
So here is what we are doing and why.
Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.
I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.
So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.
It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.
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, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.
There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.
For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.
I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.
Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.
Respectfully yours,
-Reed Hastings, Co-Founder and CEO, Netflix
p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.
[Received via e-mail, more at blog.netflix.com]
So they’re apologizing, but they’re not giving anything to subscribers at all except they’re calling the DVD part “Qwikster” and charging them separately for it. It’s nice that they’re saying they’re sorry for it, but they’re not changing anything except restructuring their business and making a separate brand. It’s all about Netflix and what they want and they’re not even throwing people a bone. It’s stupid, it’s marketing-driven not costumer-driver, and it’s not going to help Netflix recover at all since they’re not giving people anything and no one is going to remember how to spell “Qwikster.” It’s clear that Netflix is going down fast.
Plus, and I rarely ever do this but I’m going to make this all caps, they’re announcing that they’re renaming their service Qwikster.com and that they’ll be doing DVD business from Qwikster, but THEY DON’T EVEN HAVE THE QWIKSTER WEBSITE UP YET! 1997 indeed. That’s when Blockbuster was doing well, remember?
Here’s a budget video from their CEO and the new CEO of “Qwikster.” So dumb. The new Quikster CEO looks kind of pissed.
Dropped our service with the business formerly integrated and known as Netflix back in August when all this happened. I’ll stick to streaming Hulu (better TV show selection) and getting my movies from Redbox which is cheaper in the long run since there’s one a block away and I don’t have to wait for the post office or netflix. Oops. Qwikster. Any company that is WILLING to lose customers in the 6 to 7 digit range, and still continue with their Wile E Coyote scheme? I’ll pass.
Yeah, I just got this email this morning, too. And had the same reaction. Sooo, you’re not lowering your prices or improving your streaming selection, but you ARE making us all go to a new website (eventually) to access our DVD queue? What part am I supposed to be excited about?
Was just reading this in my email…
Whole idea is ridiculous, just like the name they chose for this service.
Hubby and I made the decision to go with Hulu plus/red box. Done with netflix. I know we are just one, but we really don’t use it like we should anyways, and $30/month is a little steep anyways.
Yeah i got the same e-mail this morning and thought the same thing. It’s nice they’re apologizing but they’re not giving the costumer anything in return. I have been a loyal user of the service for awhile and an thinking of just using redbox ( there’s some sort of blockbuster express thing that’s the same price/ same thing as redbox close to me) As the costumer I feel unsatisfied that I cant get what I want for the price I was originally promised. Ohh and that name…. Agree very 1997. Unfortunately I think this is the beginning of the end for Netflix….
Yikes-just got this. Man…it’s a shame as I like netflix and there’s no redbox near us. Looks like I’m moving to amazon for streaming movies. Unless anyone has a better suggestion?
And I’ve always found hulu to be annoying with the commericals. Does hulu plus get rid of that?
I didn’t realized I sent the email to spam, I am starting think I will give up netflix. I’m paying $26 a month, most of the time I am streaming but I notice there is less and less to choose from. It’s has been almost a $10 price hike from when I signed up. Maybe I should see what else is out there.
Why would they mess with something that works so well?? Total BS. I put my account on hold and I will probably just cancel it.
I have no issues with this. I’ve only ever used the mail service, I get 3 DVDs a week, and pay $16 a month now, so my cost actually dropped $4 a month. Where else can you get a deal like this? I’m tired of hearing the whining about this.
I’m calling it now. These guys are done. Too bad too……just changing the name recognition will make people leave. People don’t embrace change, and I can’t say I will either. I don’t like the approach of all of this. I’m blaming their management. These guys HAD the market, and they, themselves just gave it all away. This will probably be used as a reference point in the future of how this company failed. I was a fan, but i’m shaking my head after reading this post. They’re done.
I was trying to decide what to do about my account. We have HBO for the next couple of months and a TV with internet access (which means I can watch Neftlix on it!). Having two separate queues really solved that dilemna for me. THAT is a terrible terrible move. Why would I want to go to two separate websites to manage my movie-watching? How can I make easy decisions about whether to order a movie on DVD or watch it on the queue if I have to double check both sites to see where it’s available? This makes me sad to see that Netflix is going to crash and burn on this decision. I liked my time with them. I guess it’s time to check out the other options I have on my internet tv.
So I was concerned that this or something like it might happen after they put Blockbuster out (as we knew it) with our help – but I never thought it would be to this degree. I am getting nothing here that I signed up for. Good luck NF you are quickly sinking due to your greed.
ok unrelated, but anyone else spent a minute just staring at the bright light glimmering between the curtains and thinking, “is it me or are the curtains starting to open and the light is shining brighter?” and as you continue staring, you think it’s opening but realize…it really isn’t.
@AlaskaJoey: That’s because you don’t seem to care about Instant Watch. I liked having a blockbuster next door where I can swap my DVD out etc. You stop your whining about us. Why would you be affected when you had the DVD only service, duh. ?!?!
Okay, terrible name. Ridiculously budget-sounding, like something college students came up with. The separation of services is also silly. In an age of instant gratification, where everyone seeks to maximize efficiency and convenience– it all just adds time spent navigating for the same product (except delivered differently).
On the other hand, I don’t fault Netflix for the pricing increase. They are not as big-pocketed as the new competitors (Amazon and Hulu, owned by comcast) and studios have jumped from licensing their content at $35 million per year, to $300 million per year each. That averages at $1 billion (or was that over 5 years?) yearly. I’m sure with the postage price, the shipping/handling aspect was the more expensive business model between mail and streaming. I’m not subscribed to dvds-by-mail, and wasn’t when the price hike went up… so it didn’t really affect me. Will stay subscribed to their streaming service– honestly, amazon (I have their prime service) and hulu don’t come close to the scope of content.
And I came off sounding like an ad ;).
Redbox is going to own this b–tch, I tell you what.
I have no idea who the “CEO” has put in charge of re-imaging their brand-s, but he needs to be fired. They could have easily tacked on 2 or 3 dollars to their unlimited stream & 1 dvd to offset Starz and other licensing. Cable does it, and we all put up with it. landlords do it, and we put up with it. The method works.
As soon as the Starz content is gone, so am I. My kids watch our streaming most often through their gaming devices. I’d rather pay $1 a day to rent NEW movies and video games than $9 w/ fees and tax for movies that never even made the conversion from VHS to DVD.
Xfinity on comcast is nice for the HBO we have. The kids watch things on our phones with their app. It’s a nice compliment to paying for the content through the television with ondemand.
We’re done with Netflix, too. We’ll probably stick with thinking Amazon since they have all the current movies and it’s so easy.
this article is ridiculous. unfortunately, netflix should have factored in the stupid when they made this move. This move was smart, and shows why netflix has survived for so long. The future is streaming and they want to lead this market.
yeah, i got that email too. i only have the streaming, and i am keeping it. yes, it’s a bunch of marketing hoo-ha, but deep down i like the netflix streaming, i like the cheezy, b-movies, and i like paying only 8 bucks a month.
This seems weird. I liked having everything in one place.
The price jump was annoying only because it was SO much at once. I ended up dropping down to a lower plan to keep my payment the same. They should have done that gradually, rather than hike it so much.
I’m going to keep both services because right now they have the widest selection. Red box is only new movies, right? I usually watch older ones and TV series through the DVD service, and I like the streaming so far too.
If they can hang on, I won’t be surprised to see those movie studios come back to Netflix. NBC once tried bailing on itunes, and they were back the next year.
Also, I’ve been a subscriber for years, and have not received any email. Hmm.
Constance – I agree. The Starz package is the only thing that makes the streaming stand out from Hulu!
Of course the DVD only crew don’t care! I had 2 DVDs and streaming bundle, and that plan expired once they changed pricing! They added restrictions on how many DVDs you can take out, did you notice??
I’m done with this company once March rolls around…
I am glad I read this post. I had know idead about Netflix and this is the service I get I DVD and tv streaming. What are we to do? I will check out this Hulu thing. I like renting bluerays though so whatever service I use must have blueray options.
I am thinking of dropping my Netflix because I hardly ever watch the actual videos and only watch streaming but the don’t have HBO shows and now they won’t have Starz. Hulu plus may be a better option. But there is also the library which gives free DVDs for a week.
This really sucks if you live in Oregon. They are a big employer here in an already crappy economy. I hope it turns around. Name sounds like the defunct and disgraced Nabster as well.
I use the $4.99 Blockbuster Online plan for older movies and Redbox if I want a quick new movie.
@iggles. I pay about $9 with taxes for streaming only now, since the change.
The Starz content is primarily what my kids watch on various devices. As soon as it is gone, I’m going to pay $10 for the 6 chan starz package on cable, which also comes with ondemand, computer streaming, and a phone app.
I really like the ease of content and the range they had compared to Hulu, I agree!
I think it’s a bad move to give cable companies more of an edge in monopolizing every aspect of your content viewing. But if it’s the only way to get it, it will have to do. On top of that, they don’t even have prospects in finding new content to license. This isn’t hype, it’s a slow burn.
@Leah, if you have a Blockbuster next door and that works for you – that’s great! I like having the convenience of having the disks show up at my door. I don’t like watching movies on my computer because it hurts my eyes, and I don’t want to spend money on buying the box thing to hook it up to my TV.
When I talk about whining – I hear so much bitching about a minor price increase. Even if my price had increased I’d feel the same. Prices go up, the cost of living goes up. That’s what happens. Netflix had their prices raised by the studios, and lost their Starz contract, probably because Starz wanted to raise their prices too. Be angry at them, not Netflix.
With Redbox and Blockbuster, how do you know they’ll have what you want? Or will other people have them all out? I also like that Netflix keeps track of all the movies I want to see, because I’d never remember it.
I understand the future is streaming…but I find the content to be HORRIBLE! Maybe I’d pay a little bit, but $8 for unlimited B movies is ridiculous.
I agree that as a marketing move this is clearly very poorly concepted and executed. A step in the wrong direction that someone there will hopefully quickly recognize and (somehow) correct.
I don’t like the costing increases anymore than the next person, but cable is crap and 3x more money a month than Netflix. We’ve been watching The Wire (DVDs by mail) all summer and Redbox, while great for major movies & a handful of indies, doesn’t carry that kind of diversity or quality.
Still $8/mth in Canada for Netflix (I guess streaming only… not sure if you can even get the mailed dvd’s here, although that is something that doesn’t interest me anyways)
Although our content is way less than is available thru Netflix in the US… its still a MILLION times CHEAPER (and with better content) than even basic cable.
My streaming plus 1-DVD at a time went up from $10.xx (including tax)to $17.xx including tax. Usually I spent a lot of time just searching for something I actually want to watch.
I’ve cancelled when the fee went up, but I would have stayed as a subscriber at the lower rate. So now, instead of making $7 more, Netflix lost the $10.xx they could have had from me.
@AlaskaJoey I do see your point it makes sense. Unfortunately I do not have blockbuster next door anymore because they went out of business. I did give up on the mailed DVD’s because I can’t afford the increase otherwise I would have kept it.
Well now that I know Comcast owns Hulu there is NO way I am going with them. I already have Comcast on my TV and for the package I can afford, I had to get Netflix. Wow what a viscous circle. (And $8 more doesn’t improve my comcast package, I would have to pay at least $15 more to watch movies from 1980 anyway).
I remember getting Netflix when it first came out and it was so cheap.
Nowadays I can’t even use the service anymore since I moved to the boonies and there’s no 4G (with 3G I get limited service, so I have to watch usage. The horror). I’m certainly not going to pay that much to have one dvd out at a time (Redbox is down the street). Screw that. I have Starz, HBO, Showtime, Max and Encore I think I’ll stick with those and drop the ‘flix.
Besides they do NOT have every dvd available.Have you ever looked at an actor’s Netflix page compared to their IMDB page? First they won’t link an actor if they’re not starring and second they “hide” their credits (I guess so people won’t realize they don’t in fact have every dvd ever made). I usually only go to them to find the hard to find movies or dvds and if they can’t even have those what good are they?
And doesn’t Amazon now offer streaming? Poor Netflix is not going to make it.
I didn’t read all the comments, but man am I pissed! Most of you know I am on this crazy tour for another few years, TV sucks wherever in the world we are and I really have depended on netflix for streaming both TV and movies, but the selection has been worsening and the selection going down. Now with this it will only get worse. Is there another streaming company that does both TV and movies? Now that they won’t carry Starz or Disney it really sucks. My slingbox isn’t even cooperating these days! Suck!
No, you can’t get mailed DVD’s anywhere but the good ol’ US. I’ve been in Canada these last 5 months and it’s been streaming constantly. Just finished Mad Men and am in the middle of Weeds. No mailed DVDs, which means the movie selection sucks.
I only use Netflix mail and like it a lot. My rate actually dropped since I don’t stream. I have had my account on hold for many months though and don’t like that they’re changing the name. Sounds strange to me. I guess I’ll just figure it out later and use the local library for now.
This email is just plain embarassing- I couldn’t even finish reading it. Who wants to do business with a company that is peeing all over themselves in submission like this? Very strange.
Um, why not QUICKFLIX? Seriously.
WTF???
I cancelled my streaming and kept the two dvd option, because their streaming catalog has been getting worse. This is effing stupid.
Will we still use the Netflix website and keep our queue. Why not if no? I didn’t get this email for some reason.
I will actually now be cancelling my entire membership after October, and just Redboxing.
Robin Williams saw this one coming. In one of his acts he said, “remember when cable had no ads?”. I can’t find the video yet but if I do I will post it. Every time you pay for the next good thing, they up the ante.
Soon we’ll have to pay for YouTube.
I’ve thought about canceling and just going the Hulu route for most of my streaming. Does anyone know if there’s any Hulu plan that completely eliminates having to sit through ads? That would be my only hesitation; if I’m paying for access to something, I sure don’t want to have to watch an ad or two every few minutes.
What a stupid stupid move. I hate the new name for the DVD selection and what I liked was that you had the option to do both and both were in one place. I don’t want to go have to go to two websites. Such a stupid idea.
The problem isn’t really netflix (at least not the majority of the problem)… the problem is that these greedy studio companies started restricting their content and demanding more money. First Sony removed all their stuff and now Starz followed suit. They are afraid that all the people watching stuff through netflix will no longer pay for content individually. It’s really sad but big creedy corporations (ONCE FUCKING AGAIN) have restricted growth and progres… as a society they want us to move backward not forward so they can keep raking in millions of dollars… a-holes.
Stupid, stupid, stupid. They are forfeiting name recognition and a firm (HUGE) customer base.
There is NO NEED to separate services: put a common-sense person in place to develop/enhance/whatever-stupid-term-that-idiot-used the streaming option. It’s not that complicated. It’s called a “division,” and lots of companies have them.
Streaming doesn’t have to be separated from DVD rental. The combination just needs to be done INTELLIGENTLY.
Original Ashley – I don’t know where your boonies is located, but consider yourself lucky that you have Comcast. Where we live, we have some no-name podunk company that charges over $55 per month just for internet service! And don’t even get me started on cable fees.
Dish, here we come!
@someone that totally happens to me…
I don’t think the price increase is that bad. My problem is that their streaming selection is very poor and needs drastic improvement. The loss of Starz and Sony is not helping any. HOWEVER…I have gotten my money’s worth through the TV shows that are available through streaming. Currently watching Grey’s Anatomy.
Part of the reason people revolted when Netflix raised its prices was because we are in a recession and it was the only good deal you could find. I’ve been out of work for over a year but the one ‘luxury’ I allowed my self was Netflix. Streaming unlimited + unlimited dvds for 9 bucks! What an amazing deal it was! But when they changed it, i knew it had been too good to last. I still think it’s an increduble deal even with the price hike but I’m not able to afford it. (btw- I don’t like the idea of having 2 separate accounts & lists. )
Companies have to grow or go bust- that’s capitalism for ya.
I ditched the DVD part of my plan as soon as it was announced. I was in the middle of watching what online episodes were available of Penn & Teller’s Bullshit.
A few days later, as luck would have it, they pulled the entire series from online streaming – the jerks.
I view this entire email/video apology to be a total PR clean up. I don’t buy it. They can go ‘eff themselves. I would have dropped the entire thing right away had my husband not requested we at least stay with streaming.
I have the streaming only now since the change. I barely watched the DVD’s when they came in anyway. But with the limited selection, I’ve looked to other sites. No one else compares to Nerflix’s selection, honestly. It’s that bad. I added Hulu plus to see if they were better, but Hulu, for all their hype, plays commercials in the MIDDLE OF MOVIES!!! WTF?! WHO watches commercials during a MOVIE?! no redbox for me an I’ll look I to amazon when their selection is better. For now though, Netflix is the best option. Too bad they’re making a terrible mistake with the new marketing strategy. They could stay Netflix with separate queues for DVD and streaming as has been the case for yrs…. Smh
@Chellez Someone said that Hulu is owned by commast which explains the commercials. Blah Netflix lured us, spoiled us and then screwed us. They can’t understand why we are angry? Yeah I am going to pay 60% more for the service because I am THAT stupid. Ridiculous.
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